Combining Two Assets Having Perfectly Negatively Correlated Returns Will Result

Multiple Choice

Combining two assets having perfectly negatively correlated returns will result in the creation of aportfolio with an overall risk that

A) decreases to a level below that of either asset.
B) increases to a level above that of either asset.
C) stabilizes to a level between the asset with the higher risk and the asset with the lower risk.
D) remains unchanged.