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  3. Study Set
    Principles of Managerial Finance
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    Exam 8: Risk and Return
  5. Question
    A Portfolio Combining Two Assets with Less Than Perfectly Positive
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A Portfolio Combining Two Assets with Less Than Perfectly Positive

Question 1

Question 1

True/False

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.

Correct Answer:

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