When considering portfolio risk reduction by diversification

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Reference no: EM13908780

the most risk reduction can be achieved when returns on assets in the portfolio have zero correlation

the most risk reduction can be achieved when returns on assets in the portfolio are highly positively correlated.

the most risk reduction can be achieved when correlations between asset returns are at least 2.

the most risk reduction can be achieved when returns on assets in the portfolio are highly negatively correlated.

Reference no: EM13908780

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