How can we selectively pick assets

Reference no: EM133290502

Question: Can any two assets be combined and called a portfolio?
If so, how can we selectively pick assets so that the portfolio performs "better" than the single assets on a standalone basis?
How do we measure performance?
How do we measure "better"?
How is correlation used in the portfolio volatility calculation? What is its role?

Reference no: EM133290502

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