The volatility of Home Depot share prices is 30% and that of General Motors shares is 15%. When I hold both stocks in my portfolio and the stocks returns have a correlation of 1, the overall volatility of returns of the portfolio is ________
A) more than 15%
B) less than 30%
C) unchanged at 30%
D) equal to 15%
Answer: C
You might also like to view...
Contrast the purpose of Private-purpose Trust Funds and Permanent Funds.
What will be an ideal response?
Which of the following is incorrect about scenario analyses?
A. The process attempts to incorporate the uncertainty and potential changes that might impact strategic and operational performance. B. Scenario planning helps to emphasize that the business environment is predictable and helps to emphasize the application of traditional perspectives when solving problems. C. Managers develop scenarios and use them for discussion. D. Scenario analysis attempts to force executives to question their assumptions about the environments in which the company operates. E. The objective of the process is to force executives to question their assumptions about the environment.
The time required for the line to produce one unit to achieve an output rate that allows a firm to meet its demand requirements is known as ______.
a. cycle time b. flow time c. idle time d. balance efficiency
Intoxicated but fully aware of the consequences, Cory agrees to a two-year service contract with Signal Maintenance, Inc, at more than the average market price. This contract is? A)?enforceable
B)?not enforceable because contracting parties can change their minds. C)?not enforceable because the contract clearly favors Signal. D)?not enforceable because Cory was intoxicated when he agreed to it.