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7. You have a portfolio with a standard deviation of 21% and an expected return of 17%. You are considering adding one of the two

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7. You have a portfolio with a standard deviation of 21% and an expected return of 17%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return 13% 13% Standard Deviation 23% 18% Correlation with Your Portfolio's Returns 0.2 0.5 Stock A Stock B Standard deviation of the portfolio with stock A is _%. (Round to two decimal places.) Standard deviation of the portfolio with stock B is %. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) O A. Add A because the portfolio is less risky when A is added. OB. Add B because the portfolio is less risky when B is added OC. Add either one because both portfolios are equally risky

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