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

question 45

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,the overall volatility of the portfolio is

• A)30%.
• B)26%.
• C)28%.
• D)more information needed

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Definitions:

Emotionally Stable

The characteristic of being able to remain calm, composed, and untroubled by stress or change.

Personality

The combination of emotional, attitudinal, and behavioral response patterns of an individual.

Limit Choices

Refers to reducing the number of options available to make a decision easier or to focus on more viable alternatives.

Constant

Something that remains unchanged or stable over a period of time.