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Explain what the term Efficient Diversification means and explain how the correlation coefficient enters into the diversification discussion. Create what you would consider to be

Explain what the term Efficient Diversification means and explain how the correlation coefficient enters into the diversification discussion. Create what you would consider to be a diversified portfolio, pointing out which securities meet each of the three correlations (Perfect Positive Correlation, Perfect Negative Correlation and Zero Correlation).

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