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    Managerial Economics and Strategy Study Set 2
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    Exam 14: Managerial Decision-Making Under Uncertainty
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    If Two Events Are Perfectly Negatively Correlated, Then
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If Two Events Are Perfectly Negatively Correlated, Then

Question 109

Question 109

Multiple Choice

If two events are perfectly negatively correlated, then


A) diversification can reduce but not eliminate risk.
B) diversification can eliminate risk.
C) diversification has no impact on risk.
D) diversification cuts risk in half.

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