1) Standard deviation of the portfolio with stock A is __%?

2) Standard deviation of the portfolio with stock B is __%?

3) The portfolio with the lowest standard deviation will dictate which one to choose. Which one should you choose?

You have a portfolo with a standard deviation of 26% and an expected return of 17%. You are considering adding one of he wo stocks in the o own in the new stock and 80% of your money in your existing portfolio, which one should you add? table f after adding es ock you have % of our money Expected Standard Correlation with Return Deviation Your Portfolio's Returns Stock A Stock B 16% 16% 21% 16% 0.3 0.7