Combining two assets having perfectly positively correlated returns will result in the creation of a portfolio with an overall risk that ________.
A) remains unchanged
B) decreases to a level below that of either asset
C) increases to a level above that of either asset
D) lies between the asset with the higher risk and the asset with the lower risk

Question

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The Answer of Combining two assets having perfectly positively correlated returns will result in the creation of a portfolio with an overall risk that ________.
A) remains unchanged
B) decreases to a level below that of either asset
C) increases to a level above that of either asset
D) lies between the asset with the higher risk and the asset with the lower risk

Combining Two Assets Having Perfectly Positively Correlated Returns Will Result