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    Exam 7: Efficient Diversification
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    For a Two-Stock Portfolio, What Would Be the Preferred Correlation
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For a Two-Stock Portfolio, What Would Be the Preferred Correlation

Question 70

Question 70

Multiple Choice

For a two-stock portfolio, what would be the preferred correlation coefficient between the two stocks?


A) +1.00
B) +0.50
C) 0.00
D) −1.00
E) None of the options are correct.

Correct Answer:

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