12. Risk and diversification (S7.3) In which of the following situations would you get the largest reduction

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12. Risk and diversification (S7.3) In which of the following situations would you get the largest reduction in risk by spreading your investment across two stocks?

a. The two shares are perfectly correlated.

b. There is no correlation.

c. There is modest negative correlation.

d. There is perfect negative correlation

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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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