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Which of the following is true of portfolio diversification? A diversified portfolio containing...

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Finance

Which of the following is true of portfolio diversification?
A diversified portfolio containing negatively correlated investments has a higher variance than a portfolio containing a single asset type.
A diversified portfolio containing negatively correlated investments has a lower variance than a portfolio containing a single asset type.
A diversified portfolio containing positively correlated investments has a lower variance than a portfolio containing a single asset type.
A diversified portfolio containing positively correlated investments has a higher variance than a portfolio containing a single asset type.

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