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You have a Canadian stock in your portfolio. There are four foreign stocks available for investment. They all provide the same return and risk, except
You have a Canadian stock in your portfolio. There are four foreign stocks available for investment. They all provide the same return and risk, except their correlation coefficients with your Canadian stock are different. Which one would you choose?
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- Stock A with a correlation coefficient of -0.1
- Stock B with a correlation coefficient of zero
- Stock C with a correlation coefficient of 0.5
- Stock D with a correlation coefficient of one
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