(Solution) - Consider two portfolios one composed of 4 securities and the -(2025 Original AI-Free Solution)

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Consider two portfolios, one composed of 4 securities and the other of 10 securities. All the securities have a beta of 1 and unique risk of 30%. Each portfolio distributes weight equally among its component securities. If the standard deviation of the market index is 20%, calculate the total risk of both portfolios.