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Owning Two Securities Instead of One Will Not Improve a Portfolio's

Question 41

Multiple Choice

Owning two securities instead of one will not improve a portfolio's risk-return tradeoff if the two securities are:


A) perfectly positively correlated with each other.
B) perfectly independent of each other.
C) perfectly negatively correlated with each other.
D) of the same category,
E) g. blue chips.

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