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Mathematics, 25.11.2019 22:31 rerunkle96

Suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 (rho = 0.4) with each of the other stocks. if the weighted average of the risk (standard deviation) of the individual securities in the partially diversified portfolio of four stocks is 28%, the portfolio’s standard deviation ( σp ) most likely is

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Suppose each stock in the preceding portfolio has a correlation coefficient of 0.4 (rho = 0.4) with...
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