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#7. Suppose there are N stocks, each having annual standard deviation of return equal to 40%. If we take an equal weighted portfolio of all

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#7. Suppose there are N stocks, each having annual standard deviation of return equal to 40%. If we take an equal weighted portfolio of all stocks, the portfolio standard deviation of return is 20%. Assuming the pairwise correlations between each pair of stocks is the same, what is the magnitude of this correlation

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