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Suppose that the average stock has a volatility of 49%, and that the correlation between pairs of stocks is 19%. Estimate the volatility of an
Suppose that the average stock has a volatility of
49%,
and that the correlation between pairs of stocks is
19%.
Estimate the volatility of an equally weighted portfolio with:
a.
1
stock
b.
30
stocks
c.
1,000
stocks
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