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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,

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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