The benefits of portfolio diversification can be obtained if the fund manager adds the stocks which are less than perfectly correlated. In other words, the stocks in a portfolio should have coefficient correlation lesser than 1. The market portfolio is considered to be fully diversified, this is why if the stocks with high correlation with market portfolio is added to our own portfolio, it will approach to the fully diversified portfolio and help in reducing the total risk.
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Answer: and industry output will be less than the initial price and output
Explanation:
From the question, we are informed that a purely competitive, increasing-cost industry is in long-run equilibrium and it was assumed that there is a reduction in consumer demand.
After all resulting adjustments have been completed, the new equilibrium price and industry output will be less than the initial price and output.
Due to the reduction in demand, the new equilibrium price will be less as the firm will want to increase the demand likewise there'll be a reduction in the output from the former output.
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This type of relationship is "one-to-one relationship".
One-to-one relationship is a term that shows a relationships of two items in which only one item can belong to the other item as taylor show the <span>relationship between the tblbilling and tblcontractor, </span>and you can easily represent this type of relationship in databases and you can easily understand this relationship.