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Suppose there are ten (10) identical stocks in the market. Each of these stocks has a standard deviation of returns of 80%. The correlation between

Suppose there are ten (10) identical stocks in the market. Each of these stocks has a standard deviation of returns of 80%. The correlation between any two stocks is 0.5.

a) What is the standard deviation of a portfolio that invests the same amount in each stock?

b) What if the number of stocks increases to one thousand (1,000)?

c) What is the Mean Variance Efficient portfolio in the case of (1000) stocks?

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