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A manager is considering adding a new investment to the portfolio. The existing portfolios Sharpe ratio is 0.65. The new investment has a Sharpe ratio
A manager is considering adding a new investment to the portfolio. The existing portfolios Sharpe ratio is 0.65. The new investment has a Sharpe ratio of 0.5, and a correlation coefficient with the portfolio of 0.8. Should the new investment be added or not?
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