menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Corporate Finance Study Set 5
  4. Exam
    Exam 11: Optimal Portfolio Choice and the Capital Asset Pricing Model
  5. Question
    Consider an Equally Weighted Portfolio That Contains 100 Stocks
Solved

Consider an Equally Weighted Portfolio That Contains 100 Stocks

Question 33

Question 33

Multiple Choice

Consider an equally weighted portfolio that contains 100 stocks.If the average volatility of these stocks is 50% and the average correlation between the stocks is .7,then the volatility of this equally weighted portfolio is closest to:


A) 0.72
B) 0.59
C) 0.40
D) 0.50

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q28: Which of the following statements is false?<br>A)

Q30: Both conservative and aggressive investors will choose

Q31: If investors have homogeneous expectations,then each investor

Q32: Use the table for the question(s) below.<br>Consider

Q35: Which of the following statements is false?<br>A)

Q36: What is the efficient frontier and how

Q36: The capital market line (CML)represents _ expected

Q38: Aggressive investors will invest more,choosing a portfolio

Q71: Suppose you invest $15,000 in Merck stock

Q73: Use the table for the question(s)below.<br>Consider the

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines