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Two assets have a correlation coefficient of -1.0. If you combine these two assets in a portfolio ________. A. there will be some combination of
Two assets have a correlation coefficient of -1.0. If you combine these two assets in a portfolio ________.
A. there will be some combination of the two assets that produces a portfolio with no risk at all
B. all combinations of the two assets will result in portfolios that are completely free of risk
C. the portfolio return will be 0% because the returns on one assets exactly offset the returns on the other asset
D. the benefits of diversification are minimal
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