You are allocating money equally among 25 stocks. You believe:             All stocks have the same levels of standard deviation at 40%;            All stocks have the same pair-wise correlation What is the standard deviation of a portfolio of equally weighted portfolio if the correlation is 0?  What is the standard deviation of a portfolio of equally weighted portfolio if the correlation is 0.5?  If you observe from the option market that the implied volatility of 25% for individual stock, but 15% for the equally weight portfolio, what is the implied correlation between stocks?

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