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Business, 13.04.2021 01:00 anjoliej9

Which of the following statements about correlation is correct?​ Group of answer choices ​If the returns from two stocks are perfectly positively correlated and the two stocks have equal variance, an equally weighted portfolio of the two stocks will have a variance, which is less than that of the individual stocks. ​Risk is reduced when negatively related stocks are combined to form portfolios as long as the correlation coefficient is not equal to -1. ​The weaker the positive correlation two stocks exhibit, the more risk can be reduced when they are combined in a portfolio. ​If a stock has a negative correlation with market, its systematic risk is more than the market risk. ​Stocks with no correlation will have minimum diversification benefits.

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Which of the following statements about correlation is correct?​ Group of answer choices ​If the ret...
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