Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

# QUESTION: How do investors make decision to invest into a portfolio which is the combination of 2 risky assets through the factor of correlation

QUESTION:

How do investors make decision to invest into a portfolio which is the combination of 2 risky assets through the factor of correlation coefficient?

What happens if the correlation of the 2 assets is close to 1, is close to 0?