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When adding an asset to a multiasset portfolio, in order to estimate the standard deviation of the combined portfolio, it is most important to consider:

When adding an asset to a multiasset portfolio, in order to estimate the standard deviation of the combined portfolio, it is most important to consider:

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A. The average standard deviation of the assets' returns in the portfolio.

B. The unsystematic risk of each asset and how it will be diversified away in the combined portfolio.

C. The covariance between the assets' returns and the returns of the other assets in the portfolio.

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