Which Share Is Likely to Further Reduce Risk for an Investor

Which share is likely to further reduce risk for an investor currently holding his portfolio in a well-diversified portfolio of common share?

A) Share A
B) Share B
C) There is no difference between A or B
D) You cannot tell from the information given The figures below show plots of monthly excess returns for two shares plotted against excess returns for a market index.

Correct Answer:

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