An investor currently holds a portfolio of risky stocks in various industries. But they currently dont have any stocks in the emerging area of electric cars. They would like to adjust their portfolio to include 10% of the value in just one electric car stock, and the rest in the original portfolio. (They will not be doing any lending or borrowing at the risk-free rate.)

All the electric car stocks have the same expected return and the same standard deviation of returns, but they have different correlations, shown below.

	ho
A	-0.6
B	0.02
C	-0.32
D	0.19

Assuming the investor is risk averse, which electric car stock should the investor choose? Choose the best answer.

Group of answer choices

C

Insufficient information to answer

B

A

D