Suppose the average stock has a volatility of 40%, and the correlation between pairs of stocks is

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Suppose the average stock has a volatility of 40%, and the correlation between pairs of stocks is 16%. Estimate the volatility of an equally weighted portfolio with

(a) 1 stock,

(b) 30 stocks,

(c) 1000 stocks.

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Corporate Finance The Core

ISBN: 9781292431611

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jul 31, 2024 09:00 AM

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Suppose the average stock has a volatility of 40%, and the correlation between pairs of stocks is

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Corporate Finance The Core

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