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Consider an equally weighted portfolio of 3 stocks, each of which is independently distributed of the others (that is, %!, ( for different securities i

Consider an equally weighted portfolio of 3 stocks, each of which is independently distributed of the others (that is, %!, "( for different securities i and j). Assume also that each stock has the same total risk, !. What fraction of each stock's risk is diversified away by including it in this portfolio?

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