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Combining uncorrelated assets will increase the overall risk level of a portfolio. decrease the overall risk level of a portfolio. not change the overall risk
Combining uncorrelated assets will
If there is no relationship between the rates of return of two assets over time, these assets are
increase the overall risk level of a portfolio. |
decrease the overall risk level of a portfolio. |
not change the overall risk level of a portfolio. |
cause the other assets in the portfolio to become positively related. |
positively correlated. |
negatively correlated. |
perfectly negatively correlated. |
uncorrelated. |
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