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A portfolio manager is studying three securities, each of them has the same expected rate of return. The correlations of each security with the existing

A portfolio manager is studying three securities, each of them has the same expected rate of return. The correlations of each security with the existing portfolio are as follows:


i) 0.50 for Security A; 


ii) - 0.50 for Security B; 


iii) 1.0 for Security C. 


Which security will lower the risk (variability) of the portfolio to the greatest degree?

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