9. Suppose that there exists a market with 100,000 securities, each of which having a variance of returns equal to .09.
Posted: Sun Jul 03, 2022 12:53 pm
9. Suppose that there exists a market with 100,000 securities,each of which having a variance of returns equal to .09. The returncovariance of each security with every other security is .03 andthe market portfolio is equally weighted; that is, the same amountof money is invested in each security. What is the standarddeviation of returns on the market portfolio? Give a numericalsolution accurate to within .001.