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Which of the following statements regarding portfolio standard deviation is accurate? a) The higher the coefficient of correlation between the securities in the portfolio, the
Which of the following statements regarding portfolio standard deviation is accurate?
a) | The higher the coefficient of correlation between the securities in the portfolio, the greater the reduction in the portfolio's standard deviation. | |
b) | There is a linear relationship between the securities' correlation coefficient and the portfolio's standard deviation. | |
c) | The degree to which the portfolio standard deviation is reduced depends on the degree of correlation between securities. | |
d) | None of the above |
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