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You have a portfolio comprised of two risky securities. This combination produces no diversification benefit. The lack of diversification benefits indicates the returns on the
You have a portfolio comprised of two risky securities. This combination produces no diversification benefit. The lack of diversification benefits indicates the returns on the two securities:
A.are too low for their level of risk.
B.move perfectly opposite of one another.
C.are too large to offset.
D.move perfectly in sync with one another.
E.are completely unrelated to one another.
Zzo9jmm th the project's risks.
D.project should be discounted at the market rate.
E.project should be discounted at the T-bill rate.
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