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QUESTION 15 Which type of correlation between stocks helps reduce risk in a portfolio? A...

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QUESTION 15 Which type of correlation between stocks helps reduce risk in a portfolio? A Negative correlation B. Positive correlation C. No correlation D. Correlation does not impact risk QUESTION 16 Should investors expect to be rewarded for carrying idiosyncratic risk? A. Yes- more risk should equate to higher reward No-Idiosyncratic risk can be removed by diversification and therefore should not be rewarded. No-carrying risk is never rewarded. D. Yes - Idiosyncratic risk is the risk that matters. B

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