1. When there are only two assets being considered for a portfolio, which of the...
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Accounting
1. When there are only two assets being considered for a portfolio, which of the following statements is correct?
a. A correlation coefficient of 0 offers no risk reduction opportunity
b. When the correlation coefficient is -1, the minimum variance portfolio has 0 variance
c. The lower the correlation coefficient, the less risk reduction potential
d. The higher the correlation coefficient between the returns of the two assets, the more risk reduction potential
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