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Which of the following statements is true? Group of answer choices A) Diversification is more effective in reducing risk when stocks are more strongly correlated

Which of the following statements is true?

Group of answer choices

A) Diversification is more effective in reducing risk when stocks are more strongly correlated with each other.

B) Diversification allows to reduce portfolio standard deviation to zero level.

C) Diversification is more effective in reducing risk when stocks are weakly correlated with each other.

D) Diversification allows to reduce some, but not all, portfolio risk.

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