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Assume you have a portfolio of assets and you are considering adding an additional asset to the portfolio, assume all of the available choices have

Assume you have a portfolio of assets and you are considering adding an additional asset to the portfolio, assume all of the available choices have the same positive expected return, which type of asset would be the most helpful in terms of diversification:

_An asset with no correlation with the portfolio

_An asset with negative correlation with the portfolio

_An asset with positive correlation with the portfolio

_An asset with perfect correlation with the portfolio

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