Calculate the variance of return of an equally weighted

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Question: Suppose the average variance of return of all stocks in a portfolio is 625 and the correlation between the returns of any two stocks is 0.3. Calculate the variance of return of an equally weighted portfolio of 24 stocks. Then state that variance as a percentage of the portfolio variance achievable given an unlimited number of stocks, holding stock variance and correlation constant.

Reference no: EM133435907

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