Question: Combining two stocks to form a portfolio offers maximum diversification benefits when the stocks have the correlation coefficient equal to 0 the stocks have the

 Combining two stocks to form a portfolio offers maximum diversification benefits

Combining two stocks to form a portfolio offers maximum diversification benefits when the stocks have the correlation coefficient equal to 0 the stocks have the correlation coefficient equal to +1 the stocks have the correlation coefficient equal to-1 the stocks have the correlation coefficient equal to 0.5

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