Question: As long as the correlation coefficient between the two assets is less than 1.0, diversification benefit exists by combining the two assets into a portfolio.

"As long as the correlation coefficient between the two assets is less than 1.0, diversification benefit exists by combining the two assets into a portfolio." True or false?

"If a firm changes its investment policy such that the beta of the firm is reduced, holding other factors in the Gordon model constant, the expected price of the stock should go higher." True or false?

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