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Consider a portfolio of two risky assets with a correlation of -0.5. Which of the following can happen when the correlation between the two assets
Consider a portfolio of two risky assets with a correlation of -0.5. Which of the following can happen when the correlation between the two assets increases to 0?
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You may lose some efficient risk and return combinations that you could achieve earlier
Investment opportunity set moves toward the northwest
The effect of portfolio diversification becomes stronger
The minimum-variance portfolio moves toward the northwest
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