Use the following three statements to answer this question:\ I. When

p_(AB)=+-1

and we know the return on Security A, we can predict the return on Security B with certainty.\ II. Generally, security returns display positive correlations with one another however they are less than one; this is because all\ securities tend not to follow the movements of the overall market.\ III. Any value of correlation less than +1 provides a possibility of diversification.

Use the following three statements to answer this question: I. When pAB=1 and we know the return on Security A, we can predict the return on Security B with certainty. II. Generally, security returns display positive correlations with one another however they are less than one; this is because all securities tend not to follow the movements of the overall market. III. Any value of correlation less than +1 provides a possibility of diversification