The Volatility of Home Depot Share Prices Is 20% and That

question 69

Multiple Choice

The volatility of Home Depot share prices is 20% and that of General Motors shares is 20%. When I hold both stocks in my portfolio, the overall volatility of the portfolio is ________.

• A) 20%
• B) 16%
• C) 18%
• D) not possible to calculate as information is inadequate

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Definitions:

Communication Channel

The medium through which messages are transmitted from a sender to a receiver, such as email, phone, or face-to-face conversation.

Technological Communication

The exchange of information and ideas through the use of electronic devices and software.

Permanent Record

A document or file that records significant information or events, intended to be kept indefinitely without changes.

Email Communication

The use of electronic mail as a means of exchanging messages and information between individuals or groups.