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QUESTION 3 A perfect negative correlation between stocks in a two-stocks portfolio is required to achieve the highest diversification. True False QUESTION 4 The only

QUESTION 3

A perfect negative correlation between stocks in a two-stocks portfolio is required to achieve the highest diversification.

True

False

QUESTION 4

The only way that an investor can create a portfolio falling to the right of the capital allocation line is by holding only risky securities in the portfolio without any risk-free security.

True

False

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