Question: what is the answer on this? L ENOL Well understood, the value of a portfolio is less than the sum of the values of its

what is the answer on this?

L ENOL Well understood, the value of a portfolio is less than the sum of the values of its components. Answered Change your responses to resubm Question 22 Homework Unanswered Two assets have a coefficient of correlation of -0.4. Asset A has a standard deviation of 20% and asset B has a standard deviation of 40%. Relative to holding a portfolio consisting of 100% of Asset B, what happens to risk if you combine these assets into a 50-50 weighted portfolio? O A Combining these assets will increase risk. O B Combining these assets will have no effect on risk. O c Combining these assets may elther raise or lower risk. O D Combining these assets will reduce risk. O E The answer cannot be determined with the information given

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