Consider an Equally Weighted Portfolio That Contains 100 Stocks

question 18

Multiple Choice

Consider an equally weighted portfolio that contains 100 stocks.If the average volatility of these stocks is 50% and the average correlation between the stocks is .7,then the volatility of this equally weighted portfolio is closest to:

• A).72.
• B).63.
• C).40.
• D).50.

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Definitions:

Photosynthesis

The method through which green plants and certain other organisms utilize sunlight to create nutrients from carbon dioxide and water.

ATP and NADPH

Adenosine triphosphate (ATP) and Nicotinamide adenine dinucleotide phosphate (NADPH) are crucial molecules in cellular energy transfer and photosynthesis, serving as energy currency and reducing power, respectively.

Light-dependent Phase

The first stage of photosynthesis where sunlight is absorbed and used to produce energy carriers ATP and NADPH.

Chemoheterotrophs

Organisms that obtain their energy and carbon from organic compounds, typically by consuming other organisms or organic matter.