Question: 5) Combining two assets having perfectly positively correlated returns will result in the creation of a portfolio with an overall risk that ________. Select One:

5) Combining two assets having perfectly positively correlated returns will result in the creation of a portfolio with an overall risk that ________.

Select One:

  • decreases to a level below that of either asset
  • lies between the asset with the higher risk and the asset with the lower risk
  • increases to a level above that of either asset
  • remains unchanged

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