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1. You have a portfolio of two risky stocks which turns out to have no diversification benefit. The reason you have no diversification is the

1. You have a portfolio of two risky stocks which turns out to have no diversification benefit. The reason you have no diversification is the returns:

move perfectly opposite of one another.

are too small.

move perfectly with one another.

are completely unrelated to one another.

are too large to offset.

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