Question: Select all that are true with respect to diversification and the risk-return trade-off. If two assets are perfectly positively correlated, then one gets diversification

Select all that are true with respect to diversification and the risk-return

 

Select all that are true with respect to diversification and the risk-return trade-off. If two assets are perfectly positively correlated, then one gets diversification benefits by combining these assets into a portfolio If two assets are less than perfectly correlated, then one gets diversification benefits by combining these assets into a portfolio If two assets are perfectly negatively correlated, then one can eliminate risk by properly combining these two assets in a portfolio If two assets are uncorrelated, then one gets diversification benefits by combining these assets into a portfolio If two assets are uncorrelated, then one cannot get diversification benefits by combining these assets into a portfolio

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