Question: For diversification to reduce risk, Select one: a. the returns on the individual securities should be highly correlated b. the prices of the stocks should

For diversification to reduce risk,

Select one:

a. the returns on the individual securities should be highly correlated

b. the prices of the stocks should be stable

c. the returns on the individual securities should be negatively correlated

d. one firm should offer dividends and the other should offer capital gains

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