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Exchange Traded Fund (ETF) is a tradable asset whose aim is to track an underlying...

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Exchange Traded Fund (ETF) is a tradable asset whose aim is to track an underlying index representing the economic condition of an entire sector.
Q7. An ETF of 100 stocks are equally weighted with equal pair-wise correlation. Each stock has stdev of 50%. What is the portfolio stdev if the pairwise correlation is a. 1 b.o c. 0.4 d. 0.8 Q8. For the above ETF, if implied volatility for the ETF is 25% and the IV for each component stock is is 50%. What is the pairwise implied correlation

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