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Market capitalization is one of the most important characteristics that help the investor determine the returns and the risk in the share. consider the following statements regarding it:
1. based upon the floating M-cap different companies are placed in different indices within a stock exchange.
2. It also helps the investors choose the stock that can meet their risk and diversification criterion.
Select the correct answer using the codes given below.
1 only
2 only
1 and 2 only
Neither 1 nor 2
Both statements are correct.
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