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  3. 1. a portfolio is equally split between 10 differe

1. A portfolio is equally split between 10 different stocks, each of which has a...

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Finance

1. A portfolio is equally split between 10 different stocks, each of which has a beta of 1 and the same correlation with the market portfolio. The idiosyncratic component of returns is uncorrelated across stocks. The annualized volatility of the market is 15%, and of the portfolio is 17%. (a) What is the volatility of each stock?

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