Use the Table for the Question(s) Below

question 14

Essay

Use the table for the question(s) below.
Consider the following expected returns, volatilities, and correlations:

-What diversification, if any, is achieved if two stocks in a portfolio are perfectly positively correlated?

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Definitions:

Opinion Leaders

Influential individuals within a community or social group who have the power to affect others' attitudes, beliefs, and behaviors regarding various topics.

Interpersonal Gossip

The act of sharing information, rumors, or speculations about others within a social network, which can influence perceptions and social dynamics.

Consumer Socialization

The process by which young individuals acquire skills, knowledge, and attitudes relevant to their functioning as consumers in the marketplace.

Opinion Formation

The process by which individuals develop their viewpoints and beliefs about a topic, often influenced by factors like media, personal experiences, and social networks.