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We can reduce volatility by investing in less than perfectly correlated assets through diversification because the expected return of a portfolio is the weighted average

image text in transcribed We can reduce volatility by investing in less than perfectly correlated assets through diversification because the expected return of a portfolio is the weighted average of the expected returns of its stocks, but the volatility of a portfolio: A. is the same as the weighted average volatility. B. depends on the expected return. C. is less than the weighted average volatility. D. is higher than the weighted average volatility. E. is independent of weights in the stocks

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