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:

Leader-member Relations

The nature and quality of the interactions and relationships between leaders and their followers within an organization.

Unstructured Task

A type of task that lacks a clear, predefined process or goal, requiring creativity and decision-making from the individual.

Position Power

The authority or influence granted to an individual or role by virtue of their positional status within an organizational hierarchy.

Relationship-oriented

A focus on building and maintaining strong interpersonal connections within an organization.