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:

Authentic Leadership

A leadership style emphasizing transparency, ethics, and openness, with leaders being true to themselves and their values.

Open And Honest Communications

A principle advocating for transparency and truthfulness in all forms of discourse, which fosters trust and understanding.

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Leaders who focus on the exchange process between themselves and their followers, motivating through rewards and penalties.

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