The Volatility of Woolworth's Share Price Is 15% and That

question 56

Multiple Choice

The volatility of Woolworth's share price is 15% and that of Reckon's shares is 15%. When I hold both shares in my portfolio and the returns have zero correlation, the overall volatility of returns of the portfolio is:

• A)more than 15%.
• B)unchanged at 15%.
• C)less than 15%.
• D)Cannot say for sure.

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