Find which case portfolio standard deviation be smallest

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Question 1: Suppose you have two assets, each has a standard deviation of 0.20. The portfolio weight is 50% for each of the two assets. In which case will the portfolio standard deviation be the smallest?

  1. The correlation between the two assets is zero.
  2. The correlation between the two assets is positive.
  3. The correlation between the two assets is negative.

Reference no: EM132589387

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