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o esig You have a portfolio with a standard deviation of 30% and an expected retum of 18%. You are considering adding one of the

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o esig You have a portfolio with a standard deviation of 30% and an expected retum of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? tudy Expected Standard Correlation with radi Return Deviation Your Portfolio's Returns Stock A 15% 25% 0.2 Stock B Pears 15% 20% 0.6 Standard deviation of the portfolio with stock As(Round to two decimal places.) Multi Standard deviation of the portfolio with stock B is 3% (Round to two decimal places.) Finan Which stock should you add and why? (Select the best choice below.) Chap O A. Add A because the portfolio is less risky when A is added Dyna B. Add B because the portfolio is less risky when B is added. Mode OC. Add either one because both portfolios are equally risky

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