The Volatility of Woolworth's Share Price Is 30% and That

question 71

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 and the returns have a correlation of 1, the overall volatility of returns of the portfolio is:

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

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