An investor is considering adding another investment to a portfolio. To achieve the maximum diversification benefits, the
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An investor is considering adding another investment to a portfolio. To achieve the maximum diversification benefits, the investor should add an investment that has a correlation coefficient with the existing portfolio closest to:
a. −1.0
b. −.5
c. 0
d. +1.0
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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