The Volatility of Woolworth's Share Price Is 30% and That

question 78

Multiple Choice

The volatility of Woolworth's share price is 30% and that of Reckon's shares is 30%. When I hold both shares in my portfolio with an equal amount in each, and the returns have a correlation of minus 1, the overall volatility of returns of the portfolio is

• A) unchanged at 30%.
• B) more than 30%.
• C) zero.
• D) Cannot say for sure

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Nonprofit Organizations

Organizations that operate for the public or social benefit, without the goal of making profits for owners or shareholders.

Social Change

The variation in societal norms and cultural values over time, which impacts the way individuals and communities live and interact.

Worth

The value or importance of something, often measured in terms of money, effectiveness, or intrinsic merit.

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Nonprofit organizations funded by a single source, like a family or corporation, to support charitable activities.