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Consider the following two statements on diversification: I. Positive stock returns are the same as a positive alpha II. The diversification benefit only exists when
Consider the following two statements on diversification:
I. Positive stock returns are the same as a positive alpha
II. The diversification benefit only exists when the correlation is not equal to 1 and not equal to -1.
a.
Only statement II is correct
b.
Both statements are incorrect
c.
Only statement I is correct
d.
Both statements are correct
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