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Combining stocks that are not perfectly positively correlated in a portfolio:

ADoubles return
BDecreases risk
CIncreases risk
DRemoves return
Answer & Solution
Correct answer: B. Decreases risk
1. When one falls the other may not. 2. Their swings partly offset each other. 3. So risk decreases. _Source: OpenStax Principles of Finance, Chapter 15, Risk and Return._
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