Question
The standard deviation of Home Depot Share prices is 30% and that of General Motors shares is 30%. When I hold both stocks in my
The standard deviation of Home Depot Share prices is 30% and that of General Motors shares is 30%. When I hold both stocks in my portfolio and the stocks returns have zero correlation, the overall standard deviation of returns of the portfolio is:
A. Unchanged at 30%
B. less than 30%
C. more than 30%
D. cannot say for sure
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Globalization Gating And Risk Finance
Authors: Unurjargal Nyambuu, Charles S. Tapiero
1st Edition
1119252652, 978-1119252658
