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    Financial Management Theory and Practice Study Set 1
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    Exam 7: Risk, Return, and the Capital Asset Pricing Model
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    Even If the Correlation Between the Returns on Two Securities
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Even If the Correlation Between the Returns on Two Securities

Question 108

Question 108

True/False

Even if the correlation between the returns on two securities is +1.0,if the securities are combined in the correct proportions,the resulting two-asset portfolio will have less risk than either security held alone.

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