You are the manager of a well-diversified portfolio (primarily comprised of stocks). Your portfolios standard deviation is 33%.

You are considering adding an investment in commodities to your portfolio. You are specifically considering adding either an investment in gold or in oil to your portfolio. You gather the following information:

Correlation with the S&P 500 Standard deviation

Gold .05 39%

Oil .64 29%

You re willing to invest an amount equal to 3% of your portfolios total value in one of the commodities (either gold or oil). Using the data above, explain which investment (oil or gold) would most likely add the most risk to your portfolio.