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A Lower Correlation Between a Foreign Stock Market and the Canadian

Question 36

Multiple Choice

A lower correlation between a foreign stock market and the Canadian stock market may


A) Increase the volatility of a globally diversified Canadian portfolios
B) Add no advantage to a well-diversified Canadian portfolios
C) Stop global diversification of Canadian portfolios
D) Encourage more foreign diversification of Canadian portfolios
E) Stimulate more diversification in local Canadian portfolios

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