How to apply group policy to a local security group.

5 pts.
Tags:
GPO
MMC
Security
I want to use Local Group Policy Editor to apply group policy to a specific custom security group created using local users and groups snapin for MMC. Is this possible and if so how? If not, than what is the purpose of being to add local security groups. Custom groups do not appear to show up in the list of users compatible with local group policy.

Software/Hardware used:
Windows 7

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