Kamla is considering investing in two risky assets ABC and XYZ. She is an extremely risk-averse investor and wants to invest consistent with her risk tolerance. If she decides to invest in both risky assets, the only way for her to dampen or minimize the overall risk of her portfolio is:

Question options:

To choose to invest in a maximum return portfolio

To add another risky asset to her current portfolio

To choose to invest in the minimum variance portfolio