Stocks 1, 2 and 3 each have the same expected return and standard deviation. The following table shows the correlation matrix for the returns on these stocks.

	Correlation of stock returns
	Stock 1	Stock 2	Stock 3
Stock 1	+1.00
Stock 2	-0.23	+1.00
Stock 3	+1.00	+0.76	+1.00

Given these correlations, the two-stock portfolio constructed from these stocks having the lowest risk is a portfolio:

Question 3 options:

	There is insufficient information to make decision.
	Invested in stocks 2 and 3.
	None of the other answers.
	Invested in stocks 1 and 2.
	Invested in stocks 1 and 3