How does the volatility of an equally weighted portfolio change as more stocks are added to it?
Question:
How does the volatility of an equally weighted portfolio change as more stocks are added to it?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (QA)
In general as you add more uncorrelated stocks to an equally weighted portfolio the volatility of the portfolio tends to decrease This phenomenon is r...View the full answer
Answered By
Vikash Gupta
I am graduated in Physics in 2018, from KIRORIMAL COLLEGE, University of Delhi. Now I am persuing Master's degree in physics. I like to do physics problems. I have experience of 1 year in tutoring. I think Physics is the only subject where you understand things,how they are happening . In physics you learn Maths and apply it. So I would like to join your platform to solve many Physics problems.
5.00+
5+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Today is April 30,2015 and you have just started your new job with a financial planning firm. In addition to studying for all your license exams. you have been asked to review a portion of a client's...
-
Suppose Tex stock has a volatility of 36%, and Mex stock has a volatility of 18%. If Tex and Mex are uncorrelated, a. Construct a portfolio with positive weights in both stocks and that has the same...
-
Today is March 29, 2019, and you have just started your new job with a financial planning firm. In addition to studying for all your license exams, you have been asked to review a portion of a...
-
Qualitative data can be graphically represented by using a : Line graph Frequency polygon Bar diagram Ogives
-
The concept of sustainable development applies to national economies but has nothing to do with individual businesses. Discuss.
-
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2024. The bonds mature on December 31, 2027 (4 years). For bonds of similar risk and maturity...
-
Question 9 indicated high vibration on the sleeve bearing and bracket in the axial vibration. What damage would this have caused?
-
An aqueous solution containing 85.0 wt% H2SO4 at 60F (specific gravity = 1.78) is diluted with pure liquid water at the same temperature. The feed solution volume is 350 mL. The mixing may be...
-
A 16-year-old girl by the name of Jenny Foster was found hitch-hiking along the Adirondack Mountains Highway in upstate New York. Mr. David Sykes, a driver on the highway, stopped to pick up the...
-
How does the volatility of a portfolio compare with the weighted average volatility of the stocks within it?
-
How does the correlation between the stocks in a portfolio affect the portfolios volatility?
-
Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow: Historically, cost of goods sold is...
-
The nylon example shown in the text is a particular type of nylon called nylon 66. (a) Look at the example in the text and explain why it is called nylon 66 (nylon-six-six). (b) Draw a nylon 66...
-
Why is the complete structured analysis and design methodology seldom employed anymore?
-
In traditional structured analysis and design, what system models are developed, and in what order?
-
What is the network architecture used in e-commerce? Please explain how each layer is related.
-
What is the difference between a thin client and a fat client?
-
Show by direct substitution that the current given by Equation 31-50 with d and Imax given by Equations 31-51 and 31-52, respectively, satisfies Equation 31-49. d?Q + R- cos ot E. max 31-49 dt2 dt I...
-
Presented below are income statements prepared on a LIFO and FIFO basis for Kenseth Company, which started operations on January 1, 2024. The company presently uses the LIFO method of pricing its...
-
What are the main steps in evaluating a true tax lease?
-
Explain why preserving capital and reducing leverage are suspect reasons for leasing.
-
In a perfect capital market, how is the amount of a lease payment determined?
-
1) The Filzinger Corporation's December 31, 2018 year-end trial balance contained the following income statement items: Account Title Sales revenue Debits Credits 6,700,000 Interest revenue 70,000...
-
What structural barriers exist that impede social mobility, and how might they be mitigated through public policy or social reform ?
-
Desjardins Co. started the year 2023 with 800,000 common shares outstanding. During 2023, Desjardins Co. completed the following share transactions: On May 31, repurchased 100,000 shares On July 31,...
Study smarter with the SolutionInn App