Statistics for three stocks, A, B, and C, are shown in the following tables.

Standard Deviations of Returns Stock: A B C Standard deviation (%): 40 20 40 Correlations of Returns Stock A B C A 1.00 0.90 0.50 B 1.00 0.10 C 1.00 Using only the information provided in the tables, and given a choice between a portfolio made up of equal amounts of stocks A and B or a portfolio made up of equal amounts of stocks B and C, which portfolio would you recommend? Justify your choice. P-968