The covariance of returns on Asset A and Asset B are negative. What does this tell us
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The covariance of returns on Asset A and Asset B are negative.
What does this tell us about the correlation coefficient for their returns? If we form a portfolio comprised of Asset A and Asset B, what is the relation between the portfolio’s risk and that of Asset A and Asset B considered separately?
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Related Book For 
Financial Management And Analysis (Frank J. Fabozzi Series)
ISBN: 9780471477617
2nd Edition
Authors: Frank J. Fabozzi, Pamela P. Peterson
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