Q:Question:respect to diversification and the risk-return trade-off. If two assets are perfectly positively correlated, then one gets diversification benefits by combining these assets into a portfolioIf two assets are less than perfectly correlated, then one gets diversification benefits by combining these assets into a portfolioIf two assets are perfectly negatively correlated, then one can eliminate risk by properly combining these two assets in a portfolioA:Answer:Solution : For a risk averse investor, putting awa...