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    Essentials of Investments Study Set 1
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    Exam 6: Efficient Diversification
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    Investing in Two Assets with a Correlation Coefficient of -
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Investing in Two Assets with a Correlation Coefficient of -

Question 7

Question 7

Multiple Choice

Investing in two assets with a correlation coefficient of -.5 will reduce what kind of risk?


A) market risk
B) nondiversifiable risk
C) systematic risk
D) unique risk

Correct Answer:

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