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If you create a portfolio of two stocks (BMW and CVY), what will happen to your portfolio risk? A. Higher if the correlation between BMW

If you create a portfolio of two stocks (BMW and CVY), what will happen to your portfolio risk?

A. Higher if the correlation between BMW and CVY decreases.
B. Higher if the correlation between BMW and CVY increases.
C. Lower if the variance of BMW is low while the variance of CVY is high.
D. Lower if both BMW and CVY have a low covariance with the risk free rate.

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