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(I) The price of a security is the present value of all the future profits. (II) Adding stocks to a portfolio generally reduces standard deviation.

(I) The price of a security is the present value of all the future profits.

(II) Adding stocks to a portfolio generally reduces standard deviation.

(I) is false, (II) true.

Both are false.

Both are true.

(I) is true, (II) false

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