FINANCE-Combining uncorrelated assets

QUESTION

Combining uncorrelated assets willincrease the overall risk level of a portfolio.decrease the overall risk level of a portfolio.not change the overall risk level of a portfolio.cause the other assets in the portfolio to become positively related.If there is no relationship between the rates of return of two assets over time, these assets arepositively correlated.negatively correlated.perfectly negatively correlated.uncorrelated.

 

ANSWER:

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