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Which is true about forming a portfolio of two stocks

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Reference no: EM132741598

Problem 1: Which of the following is true about forming a portfolio of two stocks when the correlation coefficient between them is equal to 0.00?

Option 1: The portfolio has no potential to diversify risk.
Option 2: The portfolio has maximum potential to diversify risk.
Option 3: The portfolio has some potential to diversify risk.
Option 4: None of the Above

Reference no: EM132741598

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