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A Portfolio That Combines Two Assets Having Perfectly Positively Correlated

question 104

True/False

A portfolio that combines two assets having perfectly positively correlated returns can not reduce the portfolio's overall risk below the risk of the least risky asset.


Definitions:

Uncertainty Demons

External or internal factors that introduce unpredictability in demand, supply, costs, and other aspects of business operations.

Upper Darby Township

A suburb of Philadelphia in Delaware County, Pennsylvania, known for its diverse community and rich cultural history.

Strategic Fit

The alignment of organizational strategies, resources, and capabilities with the external environment to achieve long-term objectives.

Highest Levels

The utmost or maximum degree or amount of something.

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