Question: Asset 1 has 6% expected return and 5% standard deviation.Asset 2 has 12% expected return and 10% standard deviation A. If the correlation coefficient is

Asset 1 has 6% expected return and 5% standard deviation.Asset 2 has 12% expected return and 10% standard deviation

A. If the correlation coefficient is less than one, then no portfolio obtained by combining assets 1 and 2 can have an expected return larger than 6%.

B. If the correlation coefficient is equal to one, then no portfolio obtained by combining assets 1 and 2 can have a standard deviation lower than 5%.

C. If the correlation coefficient is less than one, then no portfolio obtained by combining assets 1 and 2 can have an expected return smaller than 12%

D. If the correlation coefficient is less than one, then no portfolio obtained by combining assets 1 and 2 can have a standard deviation lower than 5%

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