The following data are available for two securities:

	Asset A	Asset B
Expected Return	10%	10%
Standard Deviation	3%	3%

An an investor forms a portfolio of 50% in Asset A and 50% in Asset B. If the correlation between the two assets is +1.00, the standard deviation of the portfolio is closest to:

Multiple Choice

• 3.0%.

• 2.6%.

• 2.1%.

• 1.5%.

• 0.0%