Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A portfolio equally combines 100 stocks, whose standard deviations are all = 0.6 and the pairwise correlation is = 0.5. Whats the standard deviation of
A portfolio equally combines 100 stocks, whose standard deviations are all = 0.6 and the pairwise correlation is = 0.5. Whats the standard deviation of the portfolio? (Please choose the closest answer!)
A. 0.300
B. 0.006
C. 0.100
D. 0.600
E. 0.500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started