a. How many variance terms and how many covariance terms do you need to calculate the risk of a 100-share portfolio?
b. Suppose all stocks had a standard deviation of 30 percent and a correlation with each other of .4. What is the standard deviation of the returns on a portfolio that has equal holdings in 50 stocks?
c. What is the standard deviation of a fully diversified portfolio of such stocks?
DATE
Question answered on Jul 22, 2018
PRICE: $14.99
Solution~000495114.zip (18.37 KB)