When two risky assets are included in a risky portfolio

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Reference no: EM132967980

Problem 1: When two risky assets are included in a risky portfolio that have a correlation coefficient of less than 0.0,

a. Risk reduction benefits will be substantial.

b. Risk reduction benefits will be less than if the correlation coefficient was positive.

c. The portfolio standard deviation will be the same as the weighted average of the individual risky asset standard deviations.

d. The portfolio standard deviation will be negative.

e. None of the above.

Reference no: EM132967980

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