Which of the following statements about the benefits of diversification are correct? I. By combining two positively correlated assets, the overall portfolio risk may be reduced II. By combining two positively correlated assets, the overall portfolio risk may be increased III. By combining two negatively correlated assets, the overall portfolio risk can be reduced IV. By combining perfectly positively correlated assets, the overall portfolio risk can be eliminated O a. I, II and III O b. I and III O c. I and IV O d. II and III O e. II and IV

Which of the following statements about the benefits of diversification are correct? I. By combining two positively correlated assets, the overall portfolio risk may be reduced II. By combining two positively correlated assets, the overall portfolio risk may be increased III. By combining two negatively correlated assets, the overall portfolio risk can be reduced IV. By combining perfectly positively correlated assets, the overall portfolio risk can be eliminated a. I, II and III b. I tand III c. I and IV d. 11 and 111 e. II and IV