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Question 3 (0.25 points) Owning two securities instead of one will not improve a portfolio's risk-return tradeoff if the two securities are: perfectly independent of

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Question 3 (0.25 points) Owning two securities instead of one will not improve a portfolio's risk-return tradeoff if the two securities are: perfectly independent of each other. O O perfectly positively correlated with each other. perfectly negatively correlated with each other. of the same category, e.g. blue chips. Question 4 (0.25 points) Given the following probability distribution, calculate the expected return of security XYZ. Probability 0.3 0.2 Potential return 20% 30% -40% 50% 10% 0.1 0.1 0.3

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