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Suppose an investor has a two asset portfolio comprised of Stock A and Stock B. The diversification effect is attributable to which component of the

Suppose an investor has a two asset portfolio comprised of Stock A and Stock B. The diversification effect is attributable to which component of the variance equation?

A) 2*Wa*Wb*Cov(A,B)

B) Var(B)*Wb^2

C) Var(A)*Wa^2

D) Beta

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