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You are considering investing in two stocks to form a portfolio. You are very risk averse (you do not like risk). Which one of the

You are considering investing in two stocks to form a portfolio. You are very risk averse (you do not like risk). Which one of the following stock combinations will you choose for your portfolio (these are your only options)?

Stocks E & F which have a correlation coefficient of 0 (zero).

Stocks A & B which have a correlation coefficient of +1.0.

Stocks G & H which have correlation coefficient of -0.8.

Stocks C & D which both have a beta of 2.0.

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