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I have Breton character with 25% passive magic resistance.

I also have an Elemental protection Block perk that grants 50% reduction to fire, frost and shock damage.

Will enchanting my shield with 40% resist magic provides me 100% reduction for all fire, frost, shock and magic.

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In Skyrim there is a difference between magic resistance and elemental protection.

Magic resistance reduces the effect of magic by a certain percentage. This is not limited to damage. For example it also reduces the duration of Paralyze spells.

Elemental protection reduces the damage from a specific element (magical or non-magical source).

Different sources of magic resistance add up additively (25% mr + 40% mr = 65% mr). The same goes for different sources of elemental protection.

Magic resistance and elemental protection add up multiplicatively (25% mr + 40% ep = 55% dmg reduction).

Also magic resistance and elemental protection are capped at 85%. So there is no 100% magic immunity in Skyrim.

The maximum damage reduction theoretically achievable is 97.75%, which you get when you have 85% magic resistance and 85% elemental protection.

Source: http://www.uesp.net/wiki/Skyrim:Resist_Magic

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