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True/False question and give explaination. You cant form a riskless portfolio out of two risky assets no matter how their returns are correlated. For example,

True/False question and give explaination.

You cant form a riskless portfolio out of two risky assets no matter how their returns are correlated. For example, if Asset A has a standard deviation of returns of 30% p.a. and Asset B a standard deviation of returns of 20% p.a., any portfolio consisting of an investment in these two assets will have risk associated with it.

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