Question: . A portfolio manager is considering adding another security to his portfolio. The correlations of the 5 alternatives available are listed below. Everything else being

. A portfolio manager is considering adding another security to his portfolio. The correlations of the 5 alternatives available are listed below. Everything else being equal, which security would enable the highest level of risk diversification?

a.+0.25

b.+0.75

c.+0.50

d.+0.10

e.+0.90

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