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Suppose we have two assets a and b what correlation levels

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1) a. Suppose we have two assets, A and B. What correlation levels between the two assets will yield diversification benefits in terms of portfolio risk reduction?

b. At what correlation level will there be no diversification benefits in terms of portfolio risk reduction?

c. Will there be any diversification benefits in terms of portfolio risk reduction in the case when the correlation between the two assets' returns is -1?

Reference no: EM13567500

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