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Under what circumstance would the risk of a two-asset portfolio not be reduced at all?

a) when the correlation coefficient of the two assets' returns is between 0 and +1.

b) when the correlation coefficient of the two assets' returns is -1.

c) when the correlation coefficient of the two assets' returns is greater than +1.

d) when the correlation coefficient of the two assets' returns is +1.

e) when the correlation coefficient of the two assets' returns is 0.

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92264990

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