The following correlation matrix is for three stocks: A, B, and C.

	Stock A	Stock B	Stock C
Stock A	1.0000	0.4850	0.4407
Stock B	0.4850	1.0000	0.7004
Stock C	0.4407	0.7004	1.0000

1- Consider that correlation matrix is for three stocks: A, B, and C. Which combination of two stocks gives you the best chance of minimizing non-systematic risk?

2- Again, consider that correlation matrix for the three stocks: A, B, and C. Which combination of two stocks gives you the best chance of minimizing systematic risk?

3- Consider againthat correlation matrix. Suppose you form a portfolio consisting of Stocks B and C. What proportion of your funds should be invested in Stock C in order to minimize the risk of the portfolio?