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

c) Which stock should you add and why?

You have a portfolio with a standard deviation of 27% 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? Standard Deviation Expected Return 15% 15% Correlation with Your Portfolio's Returns 0.3 0.7 Stock A Stock B 22% 18% Standard deviation of the portfolio with stock Ais (%. (Round to two decimal places.)