Consider an Equally Weighted Portfolio That Contains Five Stocks

question 100

Multiple Choice

Consider an equally weighted portfolio that contains five stocks.If the average volatility of these stocks is 40% and the average correlation between the stocks is .5,then the volatility of this equally weighted portfolio is closest to:

• A).17.
• B).03.
• C).41.
• D).19.

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Definitions:

Naturalistic Observation

An investigative approach where individuals are studied in their natural settings without interference from the investigator.

Zoologists

Zoologists are scientists who study animals, their behaviors, natural environments, genetics, diseases, and the overall biology of animal species.

Habitats

Ecological areas where different living organisms reside, grow, and interact.

Naturalistic Observation

A research technique involving observing subjects in their natural environment without intervention.