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A ) The key to efficient diversification is to build a portfolio of securities that are: a. Highly correlated with one another b. Less than

A ) The key to efficient diversification is to build a portfolio of securities that are:

a.

Highly correlated with one another

b.

Less than perfectly correlated with one another

c.

Perfectly correlated with one another

d.

Are negatively correlated with one another

B ) What is the required return for Dentrix Corporation? The risk-free rate is 3.1%, the risk premium is 7.5, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's beta is estimated to be 1.06. round your answer to two decimal places and express your answer as a percentage, not as a decimal.

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