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For a portfolio consisting of two stocks, A and B, the benefits from diversification are primarily determined by ______________________. the correlation between the returns of
For a portfolio consisting of two stocks, A and B, the benefits from diversification are primarily determined by ______________________.
the correlation between the returns of these two stocks. | ||
the return of the riskiest stock. | ||
the variance of the stock with the greatest weight. | ||
the differenence between the two stocks' volatilities. |
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