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For two stocks with a correlation of +1, if the securities are combined in optimal proportions, the resulting 2-stock portfolio will have less risk
For two stocks with a correlation of +1, if the securities are combined in optimal proportions, the resulting 2-stock portfolio will have less risk than either security held alone. response:
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Project Finance in Theory and Practice
Authors: Stefano Gatti
2nd edition
978-9382291589, 123919460, 978-0124157538, 978-0123919465
