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Which one of the following is TRUE? Select one: a. A maximum reduction in portfolio risk occurs when the correlation coefficient between the two stocks

Which one of the following is TRUE?

Select one:

a.

A maximum reduction in portfolio risk occurs when the correlation coefficient between the two stocks is equal to zero.

b.

Beta is a measure of total risk.

c.

Resignation of a firms chief financial officer is a source of systematic risk.

d.

The risk premium of a share is not affected by unsystematic risk.

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