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The correlation coefficient between two assets can never be higher than one because The covariance can never be smaller than the product of the standard
The correlation coefficient between two assets can never be higher than one because The covariance can never be smaller than the product of the standard deviations The covariance can never be bigger than the product of standard deviations The covariance can never be bigger than the variance of any one of the two assets The covariance can never be smaller than the variance of any one of the two assets
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