Portfolio AB was created by investing in a combination of Stocks A and B. Stock A has a beta of 1.2 and a standard deviation of 25%. Stock B has a beta of 1.4 and a standard deviation of 20%. The returns of Stock A and Stock B have a correlation of close to (but not equal to) -1.

The information given here implies that risk of the portfolio can be completely eliminated by using combination of Stocks A and B.

Group of answer choices

True

False