There are 800 stocks available in the WWE Stock Market. Vince is trying to figure out what the minimum standard deviation could be for a stock portfolio in the WWE Stock Market. Systematic risk is currently 15% in this stock market. Unsystematic risk is assumed to be (\frac{44}{Z})^{(\frac{1}{10})} % with Z denoting the number of stocks in Vince’s portfolio. What is the minimum standard deviation possible if Vince can only invest in the WWE Stock Market? Select one: a. 15.75% b. 89.8% c. 75.0% d. 21.2% e. 15.0%
There are 800 stocks available in the WWE Stock Market. Vince is trying to figure out what the minimum standard deviation could be for a stock portfolio in the WWE Stock Market. Systematic risk is currently 15% in this stock market. Unsystematic risk is assumed to be (\frac{44}{Z})^{(\frac{1}{10})} % with Z denoting the number of stocks in Vince’s portfolio. What is the minimum standard deviation possible if Vince can only invest in the WWE Stock Market? Select one: a. 15.75% b. 89.8% c. 75.0% d. 21.2% e. 15.0%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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There are 800 stocks available in the WWE Stock Market. Vince is trying to figure out what the minimum standard deviation could be for a stock portfolio in the WWE Stock Market. Systematic risk is currently 15% in this stock market. Unsystematic risk is assumed to be (\frac{44}{Z})^{(\frac{1}{10})} % with Z denoting the number of stocks in Vince’s portfolio. What is the minimum standard deviation possible if Vince can only invest in the WWE Stock Market?
Select one:
a. 15.75%
b. 89.8%
c. 75.0%
d. 21.2%
e. 15.0%
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