a. Standard deviation of the portfolio with stock A is ? %

b. Standard deviation of the portfolio with stock B is ? %

You have a portfolio with a standard deviation of 26% 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 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Expected Return 15% 15% Standard Deviation 24% 17% Correlation with Your Portfolio's Returns 0.4 0.5 Stock A Stock B