Which of the following is FALSE?

Select one:

a.

Uncorrelated assets have correlation coefficient close to zero.

b.

A firm has high sales when the economy is expanding and low sales during a recession. This firm's overall risk will be higher if it invests in another product which is counter cyclical.

c.

A portfolio that combines two assets having perfectly positively correlated returns cannot reduce the portfolio's overall risk below the risk of the least risky asset.

d.

A portfolio combining two assets with less than perfectly positive correlation can reduce total risk to a level below that of either of the components.