15. a. How many variance terms and how many covariance terms do you need to calculate the...

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15.

a. How many variance terms and how many covariance terms do you need to calculate the risk of a 100-share portfolio?

b. Suppose all stocks had a standard deviation of 30% and a correlation with each other of

.4. What is the standard deviation of the returns on a portfolio that has equal holdings in 50 stocks?

c. What is the standard deviation of a fully diversified portfolio of such stocks?

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Principles Of Corporate Finance

ISBN: 9780071314176

10th Global Edition

Authors: Richard Brealey

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Question Posted: Jul 27, 2024 10:01 AM

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15. a. How many variance terms and how many covariance terms do you need to calculate the...

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Principles Of Corporate Finance

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