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Suppose that the average stock has a volatility of 46 % and that the correlation between pairs of stocks is 24 % Estimate the volatility
Suppose that the average stock has a volatility of 46 % and that the correlation between pairs of stocks is 24 %
Estimate the volatility of an equally weighted portfolio with:
a.
1 stock
b.
30 stocks
c.
1,000 stocks
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