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Asset 1 Has an Expected Return of 10% and a Standard

Question 116

Multiple Choice

Asset 1 has an expected return of 10% and a standard deviation of 20%.Asset 2 has an expected return of 15% and a standard deviation of 30%.The correlation between the two assets is -1.0.Portfolios of these two assets will have a standard deviation ________.


A) between 0% and 20%
B) between 0% and 30%
C) below 10%
D) between 20% and 30%

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