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P 12-18 (similar to) 8 You have a portfolio with a standard deviation of 28% and an expected return of 20%. You are considering adding

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P 12-18 (similar to) 8 You have a portfolio with a standard deviation of 28% and an expected return of 20%. 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 Standard Correlation with Your Portfolio's Returns Deviation Stock A 16% 21% 0.2 Stock B 16% 19% 0.5 Standard deviation of the portfolio with stock A is . (Round to two decimal places.)

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