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The diversification effect of a portfolio of two stocks: . A. increases as the standard deviaion between the stocks declines. B. increases as the correlation

The diversification effect of a portfolio of two stocks:

.

	A.	increases as the standard deviaion between the stocks declines.
	B.	increases as the correlation between the stocks rises.
	C.	increases as the standard deviation between the stocks increases.
	D.	increases as the correlation between the stocks declines.
	E.	None of the above.

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