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

question 26

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 a correlation of 1,the overall volatility of returns of the portfolio is

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

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Definitions:

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The process of adjusting the direction and angle of a vehicle's headlights to ensure optimal visibility and safety at night.

FMVSS

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The attribute of visual perception by which a source appears to emit or reflect light, influencing how we perceive colors and contrast.

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