Part 1 | Attempt 1/2 for 10 pts. Diversification works if O assets are perfectly correlated O assets are imperfectly correlated Othere are many assets in a portfolio O asset returns have a high covariance Submit | Attempt 2/2 for 9 pts. The optimal risky portfolio is Obelow the efficient frontier found at the point of tangency between the line through the risk-free asset and the efficient frontier the portfolio with the greatest expected return above the efficient frontier the portfolio with the smallest variance Try again Submit