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Which can be true for diversified portfolios with more than one asset. A.The correlation coefficient between the returns on two assets will always have a
Which can be true for diversified portfolios with more than one asset.
A.The correlation coefficient between the returns on two assets will always have a value between 0 and +1.
B.If the correlation is negative: returns tend to have opposite signs.
C.If the correlation is positive: the return on one asset is positive and the return on the other asset tends to be negative.
D.For a correlation of +1, the returns on the assets are not correlated.
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