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Two negatively correlated stocks are used to construct a portfolio to achieve the lowest possible variance, then A. the stock with a higher return will
Two negatively correlated stocks are used to construct a portfolio to achieve the lowest possible variance, then
A. the stock with a higher return will get higher weight.
B. the stock with a higher return will get lower weight.
C. the stock with a higher variance will get higher weight.
D. the stock with a higher variance will get lower weight.
E. the risk will be zero
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