Question: You are considering adding a new security to your portfolio. In order to decide whether you should add the security you need to know the

You are considering adding a new security to your portfolio. In order to decide whether you should add the security you need to know the security

which is necessary for determining the optimal risky portfolio?

1. standard deviation

2. correlation with you portfolio

3. wight of money invested in the new security

A. 1 only

B. 1 and 2

C 2 and 3

D all of them

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