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Business, 07.05.2021 21:10 dudedan05

You are considering to add a stock to your current portfolio. You have four options: Stock A, B, C, and D with the following characteristics: Stock A: Beta 0.5, correlation with your current portfolio: 0.5, coefficient of variation: 0.15. Stock B: Beta: 0.9, correlation with your current portfolio: -0.78, coefficient of variation: 0.20. Stock C: Beta 1.5, correlation with your current portfolio: 0, coefficient of variation: 0.25. Stock D: Beta 1.2, correlation with your current portfolio: 0.1, coefficient of variation: 0.30. Which stock will provide the most diversification benefit

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