The following statements were made by a portfolio manager:

1. When the correlation between the securities is +1, an increase in the returns of the portfolio can happen only with an increase in the risk of the portfolio.
2. When the correlation between the securities is 0 or 1, an increase in the returns of the portfolio can happen despite a decrease in the risk of the portfolio.

Which of the following is true?

Group of answer choices

Only Statement II is correct.

Only Statement I is correct.

Both the statements are correct.