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Suppose each stock in Isabella's portfolio has a correlation coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average

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Suppose each stock in Isabella's portfolio has a correlation coefficient of 0.4 (p = 0.4) with each of the other stocks. If the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 31%, the portfolio's standard deviation (p) most likely is 31%

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