Question
Consider an equally weighted portfolio of stocks in which each stock has a volatility of 49 %, and the correlation between each pair of stocks
Consider an equally weighted portfolio of stocks in which each stock has a volatility of 49 %, and the correlation between each pair of stocks is 22 %.
a. What is the volatility of the portfolio as the number of stocks becomes arbitrarily large?
_%?
b. What is the average correlation of each stock within this large portfolio?
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An Introduction To Trading In The Financial Markets Market Basics
Authors: R. Tee Williams
1st Edition
0123748380, 9780123748386
