Which of the following is TRUE? With a perfect positive correlation of returns between two securities, there will always be some proportion of the securities that will result in the complete elimination of portfolio risk. Perfectly positively correlated describes two negatively correlated stocks that have a correlation coefficient of -1. The efficient portfolios provide the highest possible return for a given level of risk (i.e., for a given standard deviation). The standard deviation of a portfolio of two or more securities is always equal to the weighted average of the standard deviation of each of the individual securities in the portfolio