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Consider a portfolio (P) of two risky assets (A and B). Assume A and B are perfectly positively correlated. Which of the following statements must
Consider a portfolio (P) of two risky assets (A and B). Assume A and B are perfectly positively correlated. Which of the following statements must be true?
- P is located on the hyperbola of A and B.
- P, A, and B must have the same Sharpe ratio.
Group of answer choices
Both I and II are correct.
I is correct.
II is correct.
Neither I nor II is correct.
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