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Two assets have a coefficient of correlation of 0.5. Asset A has a standard deviation of 42% and asset B has a standard deviation of

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Two assets have a coefficient of correlation of 0.5. Asset A has a standard deviation of 42% and asset B has a standard deviation of 25%. Relative to holding a portfolio consisting of 100% of Asset A, what happens to risk if you combine these assets into a 5050 weighted portfolio? Combining these assets may either raise or lower risk. Combining these assets will reduce risk. Combining these assets will increase risk. Combining these assets will have no effect on risk

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