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Stock A has alpha of -2%. Stock B has alpha of 2%. Choose the correct statement and explain: a. Reduce your holdings in stock A

Stock A has alpha of -2%. Stock B has alpha of 2%. Choose the correct statement and explain:

a. Reduce your holdings in stock A and increase your holdings in stock B.

b. Increase your holdings in stock A and reduce your holdings in stock B.

c. Reduce your holdings in both stocks.

d. Increase your holdings in both stocks

Two people answered this question. Which answer do you think is correct?

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