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  3. Study Set
    Principles of Finance
  4. Exam
    Exam 11: Risk and Rates of Return
  5. Question
    The Only Condition Under Which Risk Can Be Reduced to Zero
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The Only Condition Under Which Risk Can Be Reduced to Zero

Question 89

Question 89

True/False

The only condition under which risk can be reduced to zero is to find securities that are perfectly negatively correlated (ρ = −1.0)with each other.

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