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Problem I (10 marks) Consider an equally weighted portfolio of stocks in which each stock has a volatility of 30 5'13, and the correlation between

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Problem I (10 marks) Consider an equally weighted portfolio of stocks in which each stock has a volatility of 30 5'13, and the correlation between each pair of stocks is 15%. a} 1("that is the volatility of the portfolio as the number of stocks becomes arbitrarily large? b) 1What is the average correlation of each stock with this large portfolio

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