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Question 7 (1.25 points) ✓ Saved Which of the following correlation coefficients between two assets will produce the least di
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Answer #1

Option E because of lesser the correlation, higher the diversification benefits, or vice versa. In other words, when the correlation between two assets is -1 then, it will yield maximum diversification benefit.

and when the correlation between two assets is +1 then, it will yield minimum or least diversification benefit.

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