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Q:Question:8. In order to diversify risk, investors are often encouraged to invest in assets whose returns have either a negative relationship or no relationship. The
Q:Question:8. In order to diversify risk, investors are often encouraged to invest in assets whose returns have either a negative relationship or no relationship. The annual return data (in \%) on two assets is shown in the accompanying table. (10 pts) a. Construct a scatterplot. b. To diversify risk, would the investor be wise to include both assets in her portfolio? Explain.
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