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43.16
16.Circle any/all that are true. (3)
Yahoo! and Amazon.com are positively correlated. Holding them together in a portfolio versus holding either one of them separately:

  1. reduces your total risk
  2. definitely reduces your systematic risk
  3. definitely reduces your unsystematic risk
  4. could reduce your unsystematic risk
  5. does not reduce your risk (they're positively correlated!)

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