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

question 86

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 with an equal amount in each, and the returns have a correlation of minus 1, the overall volatility of returns of the portfolio is

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

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Definitions:

Cognitive Impairment

A decline in mental functions such as memory, attention, and the ability to think and reason.

Agnosia

A neurological condition characterized by the inability to recognize and identify objects, people, sounds, or shapes, despite having intact sensory functions.

Motor Activities

Physical movements or actions performed by an individual, often assessed to evaluate neurological or psychological conditions.

Apraxia

A motor disorder caused by damage to the brain, characterized by difficulty in executing voluntary muscle movements, despite having the desire and physical capacity to perform them.