The correlation coefficient: 0:55:49 1. Shows a stronger relationship between the returns of two securities when its absolute value is closer to 0. 2. Provides the greatest diversification benefits for a given portfolio when at least two securities in the portfolio have a correlation coefficient equal to -1. 3. As long as PAB = -1 (correlation), an equally weighted portfolio which only consists of stock A and stock B would always be risk-free. O a. Only 1 is correct. O b. Only 2 is correct O c. Both 1 and 2 are correct. O d. Both 1 and 3 are correct. O e. Both 2 and 3 are correct