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1. If the correlation between two companies shares is at 0.9989, what would be their level of diversification if you make a portfolio just by

1. If the correlation between two companies shares is at 0.9989, what would be their level of diversification if you make a portfolio just by using these two shares? Please explain with calculation and graph.

2. If the level of diversification for two companies is poorly diversified, what does that mean? Please explain.

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