Correlations and portfolio risk

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Correlations and Portfolio Risk An investor is holding a portfolio and is considering adding either Stock A, Stock B or Stock C to her portfolio. With respect to her portfolio, Stock A has a correlation coefficient of 0.41, Stock B has a correlation coefficient of 0.49 and Stock C has a correlation coefficient of 0.83. If all three stocks have the same expected return she should choose ____________ to give the best chance of improving her excess return per unit of risk.

Reference no: EM131907913

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