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The returns on two assets have a correlation coefficient of+ 1. By combining these two assets in a portfolio, we can reduce the diversification
The returns on two assets have a correlation coefficient of+ 1. By combining these two assets in a portfolio, we can reduce the diversification risk to: 10% The diversification risk cannot be reduced. 70% 50% 90%
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Investments Analysis and Management
Authors: Charles P. Jones
12th edition
978-1118475904, 1118475909, 1118363299, 978-1118363294
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