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

Recognize different types of costs (variable, fixed, total) and their behavior in various business scenarios.

Identify various pricing strategies used by firms in different competition settings (e.g., oligopolistic, monopolistic, pure competition).

Understand the concept of price elasticity and how changes in prices affect demand and supply.

Comprehend the role of pricing tactics in marketing and operations, including loss-leader and predatory pricing.

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Definitions:

Money Income

The total amount of monetary earnings received by an individual or household, including wages, salaries, bonuses, and other income sources before taxes.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford at given prices within his or her budget.

Budget Line

A visual depiction of every potential combination of two goods or services that can be acquired within a specified budget.

Money Income

Money income denotes the total amount of cash or cash-equivalents received by an individual or household over a certain period, from various sources such as wages, investments, and transfers.