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:

Nondrug Intervention

Treatment strategies for various conditions that do not involve medications, including psychological therapies, lifestyle changes, and physical therapies.

Cognitive-Behavioural Therapy

A psychotherapeutic approach that addresses dysfunctional emotions, behaviors, and cognitions through a goal-oriented, systematic process.

Family Therapy

A type of psychological counseling that helps family members improve communication and resolve conflicts in a therapeutic setting, often involving multiple family members in the treatment process.

Psychoeducation

The process of educating patients about their psychological disorders, including symptoms, treatments, and coping strategies.