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Let three stocks A, B, and C. The correlation coefficient between rates of return of A and of B equals 1, that is, PA,B 1.

Let three stocks A, B, and C. The correlation coefficient between rates of return of A and of B equals 1, that is, PA,B" 1. As a result a. PB.C0 O C cannot tell d. PB,C PAB PB,C PAC

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