Question: Indicate whether the following statement is TRUE or FALSE . Then provide an explanation for your answer. You can't form a riskless portfolio out of

Indicate whether the following statement is TRUE or FALSE . Then provide an explanation for your answer.
You can't form a riskless portfolio out of two risky assets - no matter how their returns are correlated. For

You can't form a riskless portfolio out of two risky assets - no matter how their returns are correlated. For example, if Asset A has a standard deviation of returns of 30% p.a. and Asset B a standard deviation of returns of 20% p.a., any portfolio consisting of an investment in these two assets will have risk associated with it.

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