Risk can be totally eliminated by combining two assets that are perfectly positively correlated.

Name: Risk can be totally eliminated by combining two assets that are perfectly positively correlated.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

Combining two assets that are perfectly positively correlated can reduce the overall level of risk, but it cannot completely eliminate it. If there is a systematic risk or event that affects both assets, the combined portfolio would still be affected, resulting in some level of risk.

Risk Can Be Totally Eliminated by Combining Two Assets That