Use the following information to answer Questions 1 to 3 You are a portfolio manager of Pinnacle Asset Management Co., a money management firm serving high net worth clients. One of your clients is Nick Revell. His current US equity portfolio (for which you are responsible) is worth $200 million. Nick will add another $50 million to the portfolio and you are thinking of investing the entire $50 million in Apple Computer Inc. Your equity analyst has just presented you with the following information for the coming year: The correlation between the original portfolio and Apple is 0.4