Consider an Equally Weighted Portfolio That Contains 20 Stocks

question 99

Multiple Choice

Consider an equally weighted portfolio that contains 20 stocks.If the average volatility of these stocks is 35% and the average correlation between the stocks is .4,then the volatility of this equally weighted portfolio is closest to:

• A).17.
• B).41.
• C).14.
• D).37.

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Definitions:

Executed Times

A metric or counter that tracks the number of times a specific piece of code, such as a function or a loop, has been run or executed.

Infinite Number

An infinite number is a concept in mathematics that describes a quantity without bound or end, often used in mathematical theories and equations.

Increment Count

A programming operation that increases the value of a variable, typically by 1.