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Suppose you group all the stocks in the world into mutually exclusive portfolios (each stock is in only one portfolio): growth stocks and value…

Suppose you group all the stocks in the world into mutually exclusive portfolios​ (each stock is in only one​ portfolio): growth stocks and value stocks. Suppose the two portfolios have equal size​ (in terms of total​ value), a correlation of 0.50.5

 

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