The volatility of Woolworth's share price is 30% and that of Reckon's shares is 30%. When I hold both shares in my portfolio and the returns have zero correlation, the overall volatility of returns of the portfolio is

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When two assets have zero correlation, the overall portfolio volatility is reduced due to diversification benefits, resulting in a volatility less than the individual volatilities of the assets.

The Volatility of Woolworth's Share Price Is 30% and That