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Rehan Khan, a fund manager is allocating different securities in his equity fund with an objective to diversify risk. Assuming no short selling, diversification benefit

Rehan Khan, a fund manager is allocating different securities in his equity fund with an objective to diversify risk. Assuming no short selling, diversification benefit is most likely to occur when the correlations among the securities contained in the portfolio are: A) equal to positive one. B) greater than positive one. C) less than positive one.

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