Question: 1)Please explain the importance of (1) correlation/covariance, (2) the efficient frontier and (3) the sharpe ratio in the context of evaluating multiple portfolio allocations of

1)Please explain the importance of (1) correlation/covariance, (2) the efficient frontier and (3) the sharpe ratio in the context of evaluating multiple portfolio allocations of

2- risky assets.

2)Please describe the process you would follow when evaluating and ultimately deciding if you would add a particular stock to your portfolio.Be sure to include factors you would consider and what data you would you be looking at before investing.Be specific in your explanation.

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