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Calculate the portfolio standard deviation of return

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Assume that the common correlations of returns between any two stocks in an equally weighted portfolio that contains 100 stocks is 0.3 and the average variance of stocks in the portfolio is 625.

a) Calculate the portfolio standard deviation of return.

b) Calculate the variance of return of an equally weighted portfolio of 24 stocks

c) How much more volatility is in this portfolio relative to a portfolio that contains infinite number of stocks

Reference no: EM132504074

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