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Assume that the correlation coefficient PA,B between the rates of return of stocks A and B is negative. Also assume that you combine the two
Assume that the correlation coefficient PA,B between the rates of return of stocks A and B is negative. Also assume that you combine the two assets to form portfolio P. All else equal, the higher the absolute value of PAB l be higher and som o a. the lower the risk of P b. the higher the risk ofPO C.sometimes the risk of P wil times lower O d.cannot tell
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