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Your are looking at diversifying your portfolio. Below are several different industry that you have considered investing in, along with the correlation coefficient of each

Your are looking at diversifying your portfolio. Below are several different industry that you have considered investing in, along with the correlation coefficient of each with your current portfolio. Which of the following would achieve the MOST reduction in the risk of your portfolio?

  1. Computers, +0.8
  2. Transportation, +0.3
  3. Real Estate 0.0
  4. Paper Products, 0.1

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