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Business, 05.11.2019 23:31 ohshushan2

Suppose each stock in andre’s portfolio has a correlation coefficient of 0.4 (rho = 0.4) with each of the other stocks. if the weighted average of the risk of the individual securities (as measured by their standard deviations) included in the partially diversified four-stock portfolio is 32%, the portfolio’s standard deviation ( σp ) most likely is 32%.

(a) equal to,
(b) more than,
(c) less than

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Suppose each stock in andre’s portfolio has a correlation coefficient of 0.4 (rho = 0.4) with each o...
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