There are 500 stocks available in the WWF Stock Market. Stephanie is trying to figure out what the minimum standard deviation could be for a stock portfolio in the WWF Stock Market. Systematic risk is currently 12% in this stock market. Unsystematic risk is assumed to be (\frac{500}{Z^{1.1}}) % with Z denoting the number of stocks in Stephanies portfolio. What is the minimum standard deviation possible if Stephanie can only invest in the WWF Stock Market?

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To calculate the minimum standard deviation possible for Stephanies stock portfolio in the WWF Stock ... View the full answer