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This paper considers a cooperative communications system where a single relay aids a point-to-point transmission using an amplify and forward configuration. The relay linearly encodes the K received symbols into N new ones by means of a matrix multiplication, and the destination employs a LMMSE filter to estimate the information originally transmitted. A large- SNR approximation of the outage probability Pout is derived for this system. The analysis of Pout shows that the diversity order of the system depends on the ratio K/N: if such a ratio is too high (the relay excessively compresses the information), no diversity is added by introducing the relay. Conversely, if this ratio is smaller than a certain quantity, diversity order 2 is ensured. The derived expressions are finally used to establish the diversity-multiplexing tradeoff of the system.