Estimate the volatility of an equally weighted portfolio


Suppose that the average stock has a volatility of 51 %, and that the correlation between pairs of stocks is 24 %.

Estimate the volatility of an equally weighted portfolio ?with:

a. 1 stock

_%?

b. 30 stocks

_%?

c. 1,000 stocks

_%?

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Financial Management: Estimate the volatility of an equally weighted portfolio
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