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Diversification benefit resulting from forming the portfolio

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Reference no: EM132685052

Asset A offers an expected rate of return of 10% with a standard deviation of 25%. Asset B offers an expected rate of return of 5% with a standard deviation of 30%. Assume that the risk-free interest rate is zero.

Show with calculations that there is NO diversification benefit resulting from forming the portfolio.

Reference no: EM132685052

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