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Did Minnesota high school make the right call on student's rosary beads?

A Minnesota high school student who wears rosary beads to school in support of his cancer-stricken grandmother has been ordered to put them in his pocket by school district officials. The school says the beads could be mistaken as a sign of gang membership. The district's policy forbids any jewelry or accessories that could be considered a symbol of gang membership. Did the school make the right call?

This is a non-scientific viewer question.