Combining two assets having perfectly negative correlated returns will result in the creation of a portfolio with

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Combining two assets having perfectly negative correlated returns will result in the creation of a portfolio with an overall risk that______.

a. Stabilizes to a level between the asset with the higher risk and the asset with the lower risk

b. Remains unchanged

c. Increases to a level above that of either asset

d. Decreases to a level bellow that of either asset

Related Book For answer-question

Business Statistics

ISBN: 978-0321925831

3rd edition

Authors: Norean Sharpe, Richard Veaux, Paul Velleman

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Posted Date: Oct 25, 2019 11:05 AM

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