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Ques. Choose the option to correctly complete the sentence. Consider an equally weighted portfolio of two risky assets, A and B. An investor will receive

Ques. Choose the option to correctly complete the sentence. Consider an equally weighted portfolio of two risky assets, A and B. An investor will receive diversification benefits (reduced volatility) from this portfolio as long as the correlation coefficient between asset A and asset B is:

  • 1

  • greater than 1

  • less than 1

  • not equal to zero

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