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    Financial Institutions Management
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    Exam 1: Why Are Financial Institutions Special
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    The Ability of Diversification to Eliminate Much of the Risk
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The Ability of Diversification to Eliminate Much of the Risk

Question 36

Question 36

True/False

The ability of diversification to eliminate much of the risk from the asset side of the balance sheet of an FI is the result of choosing assets that are less than perfectly positively correlated.

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