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    Exam 8: Risk and Rates of Return
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    Two Stocks Can Be Combined to Form a Portfolio That
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Two Stocks Can Be Combined to Form a Portfolio That

Question 67

Question 67

True/False

Two stocks can be combined to form a portfolio that is risk free (i.e., has no risk) if the stocks are perfectly negatively correlated (r = −1.0) with each other. 

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