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  3. Study Set
    Principles of Managerial Finance
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    Exam 12: Risk and Refinements in Capital Budgeting
  5. Question
    By Combining Two Projects with Negatively Correlated Cash Inflows, a Firm
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By Combining Two Projects with Negatively Correlated Cash Inflows, a Firm

Question 53

Question 53

True/False

By combining two projects with negatively correlated cash inflows, a firm reduces the combined cash inflow variability and its risk.

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