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Which of the following is true about forming a portfolio of two stocks when the correlation coefficient between them is equal to 0.00 a. The

Which of the following is true about forming a portfolio of two stocks when the correlation coefficient between them is equal to 0.00

a. The portfolio has maximum potential to diversify risk.

b. The portfolio has some potential to diversify risk.

c. The portfolio has no potential to diversify risk.

d. none of the above

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