The Volatility of Woolworth's Share Price Is 25% and That

question 68

Multiple Choice

The volatility of Woolworth's share price is 25% and that of Reckon's shares is 25%. The correlation between Woolworth and Reckon shares is 0.15. When I hold both shares in my portfolio, the overall volatility of the portfolio is:

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

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