Question
please answer each parts of question 2A) Consider a portfolio of cancer research projects, and assume for simplicity that each project's financial return has a
please answer each parts of question
2A) Consider a portfolio of cancer research projects, and assume for simplicity that each project's financial return has a standard deviation of 400%. If the correlation coefficient between each pair of projects is 0.5, what is the standard deviation of an equal-weighted portfolio of: (Note: Your answer should be a number in percentage form. Do not enter '%'.)
10 projects? ____% 100 projects ___% 1000 projects ____%
2B) Now assume the projects are statistically independent and therefore uncorrelated. What is the standard deviation of an equal-weighted portfolio of: (Note: Your answer should be a number in percentage form. Do not enter '%'.)
10 projects? ____% 100 projects ___% 1000 projects ____%
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