The Volatility of Home Depot Share Prices Is 30% and That

question 79

Multiple Choice

The volatility of Home Depot Share prices is 30% and that of General Motors shares is 30%.When I hold both stocks in my portfolio and the stocks returns have zero correlation,the overall volatility of returns of the portfolio is:

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

---

Definitions:

Dopamine Hypothesis

A theory suggesting that the imbalance of dopamine levels in the brain contributes to the symptoms of schizophrenia and other psychotic disorders.

Parkinsonian Symptoms

A set of movement abnormalities seen in Parkinson's disease, including tremors, stiffness, and slowness of movement.

Antipsychotic Drugs

Medications used to manage psychosis, including schizophrenia, by affecting neurotransmitter levels in the brain to reduce symptoms like hallucinations and delusions.

Substantia Nigra

A brain structure located in the midbrain, crucial for movement control and implicated in disorders like Parkinson's disease.