Suppose that the return standard deviation for all stocks in a market is 50%. Further...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Suppose that the return standard deviation for all stocks in a market is 50%. Further assume that the return correlation for all pairs is o- i.e., any two different stock returns are not correlated. What is the return standard deviation of an equal weighted portfolio consisting of 27 stocks? 11.47% 9.62% 0 7.81% 13.87%
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!