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    Exam 6: Efficient Diversification
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    For a Two-Stock Portfolio,what Would Be the Preferred Correlation Coefficient
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For a Two-Stock Portfolio,what Would Be the Preferred Correlation Coefficient

Question 3

Question 3

Multiple Choice

For a two-stock portfolio,what would be the preferred correlation coefficient between the two stocks?


A) +1.00.
B) +0.50.
C) 0.00.
D) -1.00.
E) none of these.

Correct Answer:

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