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  3. Study Set
    Risk Management and Insurance Study Set 1
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    Exam 5: Risk-Handling Techniques: Diversification and Hedging
  5. Question
    As Long as Their Correlation Coefficient Is Less Than 1
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As Long as Their Correlation Coefficient Is Less Than 1

Question 3

Question 3

True/False

As long as their correlation coefficient is less than 1, risk is being reduced by adding investments to the pool.

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