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1. (1 pt) Suppose the average stock has a volatility of 30% and the correlation between any two stocks is 10%. Estimate the volatility of

1. (1 pt) Suppose the average stock has a volatility of 30% and the correlation between any two stocks is 10%. Estimate the volatility of an equally weighted portfolio with (a) 1 stock, (b) 20 stocks, and (c) 1000 stocks.

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