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If the returns on two assets are perfectly positively correlated and an equally weighted portfolio consisting of the two assets is formed, the standard deviation
If the returns on two assets are perfectly positively correlated and an equally weighted portfolio consisting of the two assets is formed, the standard deviation of the resulting portfolio will be:
a. | Below the average of the standard deviations of the two assets | |
b. | Above the average of the standard deviations of the two assets | |
c. | The average of the standard deviations of the two assets | |
d. | Cannot be determined |
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