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Expected return on security X is 2 0 % , expected return on security Y is 3 0 % , risk ( % ) of

Expected return on security X is 20%, expected return on security Y is 30%, risk (%) of security X is 10% and that of Y is 16%. If coefficient of correlation between the returns of X and Y is -1,0.5 and +1. Evaluate the impact on the gains from diversification, if investment is made equally in both the stocks.

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