What is the volatility of the portfolio

Reference no: EM131960674

Question: Consider an equally weighted portfolio of stocks in which each stock has a volatility of 49 %, and the correlation between each pair of stocks is 22 %.

a. What is the volatility of the portfolio as the number of stocks becomes arbitrarily large?

b. What is the average correlation of each stock within this large portfolio?

Reference no: EM131960674

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