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The diversification effect of a portfolio of two stocks: Select one: a. increases as the correlation between the stocks declines. b. is not influenced by

The diversification effect of a portfolio of two stocks:

Select one:

a. increases as the correlation between the stocks declines.

b. is not influenced by the correlation between the stocks.

c. increases as the correlation between the stocks rises.

d. None of the answers is correct.

e. decreases as the correlation between the two stocks declines.

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