Combining two assets having perfectly negative correlated


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 below that of either asset

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Financial Management: Combining two assets having perfectly negative correlated
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