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The Creation of a Portfolio by Combining Two Assets Having

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True/False

The creation of a portfolio by combining two assets having perfectly positively correlated returns cannot reduce the portfolio's overall risk below the risk of the least risky asset. On the other hand, a portfolio combining two assets with less than perfectly positive correlation can reduce total risk to a level below that of either of the components.


Definitions:

Not Evaluated

Refers to expressions or code sections that are ignored or skipped over during the execution or compilation process.

Syntax Error

A mistake in the code's syntax that causes a program to fail to compile or run correctly.

Compare

Typically refers to a method or function that assesses two values or objects and determines their ordering or if they are equal.

Control Structure

The blocks in programming that analyze variables and choose directions in which to go based on given parameters.

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