The Volatility of Home Depot Share Prices Is 20% and That

question 69

Multiple Choice

The volatility of Home Depot share prices is 20% and that of General Motors shares is 20%. When I hold both stocks in my portfolio, the overall volatility of the portfolio is ________.

• A) 20%
• B) 16%
• C) 18%
• D) not possible to calculate as information is inadequate

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Definitions:

Rating Error

Mistakes or biases that can occur during the evaluation of employee performance, affecting the fairness and accuracy of appraisals.

Administrative Reason

A justification or cause related to management or procedural issues within an organization.

Merit Pay

A salary increase awarded to employees based on their job performance, used as a tool for motivation and encouragement of high performance.

Performance Appraisals

A systematic evaluation of an employee's performance in their job roles over a specific period.