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Assume you hold the market portfolio. Which of the following stocks would provide you with the greatest diversification benefit? Expected Standard Stock return deviation Beta

Assume you hold the market portfolio. Which of the following stocks would provide you with the greatest diversification benefit?

Expected Standard Stock return deviation Beta W 14% 23% 1.0 X 8% 18% (0.7) Y 2% 20% (1.0) Z 20% 35% 2.0

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