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3. A highly risk-averse investor is considering the addition of an asset to a 10-stock portfolio. The two securities under consideration both have an expected return equal to 15 percent. However, the distribution of possible returns associated with Asset A has a standard deviation of 12 percent, while Asset B's standard deviation is 8 percent. Both assets are correlated with the market with ρ = 0.75. Which asset should the risk-averse investor add to his/her portfolio?a. Asset A.b. Asset B.c. Both A and B.d. Neither A nor B.e. Cannot tell without more information.

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