If You Have a Portfolio of Two Risky Stocks Which

Multiple Choice

If you have a portfolio of two risky stocks which turns out to have no diversification. The reason you have no diversification is:

A) the returns are too small.
B) the returns move perfectly opposite of one another.
C) the returns are too large to offset.
D) the returns move perfectly with one another.
E) the returns are completely unrelated to one another.