A ) The key to efficient diversification is to build a portfolio of securities that...
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Finance
A ) The key to efficient diversification is to build a portfolio of securities that are:
a.
Highly correlated with one another
b.
Less than perfectly correlated with one another
c.
Perfectly correlated with one another
d.
Are negatively correlated with one another
B ) What is the required return for Dentrix Corporation? The risk-free rate is 3.1%, the risk premium is 7.5, the expected rate of inflation is 3.4% and the company can currently issue bonds at a YTM of 4.9%. The company's beta is estimated to be 1.06. round your answer to two decimal places and express your answer as a percentage, not as a decimal.
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