QUESTION $12$

You are considering making a portfolio with $2$ different stocks, and you definitely want stock A You are considering stocks $Q.C,D,$ and $E$ for the second stock. Consider the correlation coefficients:

A and $B$:$0\mathrm{.}89$

A and $C$:$0\mathrm{.}17$

A and $D$:$0\mathrm{.}50$

A and $E$:$=0\mathrm{.}15$

Which stock should you choose to pair with stock A if you care about recieving the most diversification benefits?

B

E

C

D