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Spe Question 9 1 pts Which one of the following statements is correct? The risk is not reduced if the correlation coefficient between the new

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Spe Question 9 1 pts Which one of the following statements is correct? The risk is not reduced" if the correlation coefficient between the new added stock and the stock in the portfolio equals 1. Unless the correlation between new stock and the stock in the porfolio is-1, otherwise diversification is meaningless. The risk will be eliminated if we add a new stock in the portfolio The risk will be eliminated as long as the investor keep adding new stocks in the portfolio. Question 10 1 pts Which one of the following statements is correct? The slope of SML is market risk premium. By investing based on past previous 52-week low information, you can make prohts under semistrong form EMH O By investing based on past annual earnings, you can make profits under strong-form EMH The slope of CML is market risk premium

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