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Consider an Equally Weighted Portfolio That Contains 20 Stocks

Question 99

Multiple Choice

Consider an equally weighted portfolio that contains 20 stocks.If the average volatility of these stocks is 35% and the average correlation between the stocks is .4,then the volatility of this equally weighted portfolio is closest to:


A) .17.
B) .41.
C) .14.
D) .37.

Correct Answer:

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