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Q1. As the correlation between the stock returns declines, the risk reduction through diversification in a portfolio of two stocks: (increases / decreases / no

Q1. As the correlation between the stock returns declines, the risk reduction through diversification in a portfolio of two stocks: (increases / decreases / no change)

Q2. As the correlation between the stock returns increases, the risk reduction through diversification in a portfolio of two stocks: (increases / decreases / no change)

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