2. Standard deviation of the portfolio with stock B is ____ %

3. Which stock would you add and why?

a. Add B because the portfolio is less risky when B is added.

b. Add A because the portfolio is less risky when A is added.

c. Add either one because both portfolios are equally risky.

You have a portfolio with a standard deviation of 27% and an expected return of 19%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)