Assignment
As you know, the risk of two assets is calculated by getting the square root of the equation:
σ^2_p=w_1^2 σ_1^2+w_2^2 σ_2^2+2w_1 w_2 P_1,2 σ_1 σ_2
Explain what would happen if one of the two assets was a risk-free asset. In other words, what would be the risk of the combination of the two assets? You have to explain that in accordance with the above equation.