Assume that the average variance of return for an individual security is 50 and that the average

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Assume that the average variance of return for an individual security is 50 and that the average covariance is 10. What is the expected variance of an equally weighted port folio of 5, 10, 20, 50, and 100 securities?

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Modern Portfolio Theory and Investment Analysis

ISBN: 978-1118469941

9th edition

Authors: Edwin Elton, Martin Gruber, Stephen Brown, William Goetzmann

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Question Posted: Jun 10, 2015 03:34 AM

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Assume that the average variance of return for an individual security is 50 and that the average

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It is shown in the text below Table that a formula for the variance of an equally ...View the full answer

Modern Portfolio Theory and Investment Analysis

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