Suppose Priyanka can only afford to complement stock A by adding just one of the two other stocks, elther stock Bor stock C. The following table shows the correlation coefficients between stocks A and B and between stocks A and C, as well as the average returns and standard deviation for the two potential portfolios, AB and AC: Stocks A and B Stocks A and C 0.57 -0.76 Correlation coefficient Average return Standard deviation 2.5% 2.5% 4.56% 11.73% Suppose Priyanka has to choose between two portfolios, AB and AC. Priyanka will be better off choosing Portfolio AB Grade Step TOTAL SCORE: 2/4 Portfolio AC