#7

Standard Deviation of the portfolio with Stock A is

Standard Deviation of the portfolio with Stock B is

Which stock should you add & why?

You have a porttolio with a standard deviation of 23% and an expected return of 19%. You are considering adding one of the tso stocks in the following table. if atter avding the stock you will have 25% of your money in the new stock and 75% of your money in your existing partfolio, which one should you add? Standard deviation of the portfolio with stock A is 19.754 \%hi. (Round to two decinal paces.) Standard deviation of the porttolio with stock B is 20.29%%. (Round to two decimal places.) Which stock should you add and why? (Select the best choice bolow.) A. Add A because the portiolio is less risky when A is added B. Add B because the porttolio is less risky when B is added C. Add eaher one becinse both portiolios are equally risky