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

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

Note: the answer is not increase to a level above that of either asset

lies between the asset with the higher risk and the asset with the lower risk

remains unchanged

increases to a level above that of either asset

decreases to a level below that of either asset

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