When the two coins have a perfect positive correlation of +1, its impossible to diversify away any
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When the two coins have a perfect positive correlation of +1, it’s impossible to diversify away any risk. You will see that a similar conclusion holds for stock portfolios.
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Related Book For
Principles Of Finance With Excel
ISBN: 9780190296384
3rd Edition
Authors: Simon Benninga, Tal Mofkadi
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