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You Have a Portfolio of Two Risky Stocks Which Turns

Question 95

Multiple Choice

You have a portfolio of two risky stocks which turns out to have no diversification benefit. The reason you have no diversification is the returns:


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

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