Standard Deviation of the portfolio with stock A is __

Standard Deviation of the portfolio with stock B is __

Which stock should you add and why?

Answer ALL parts and BOLD the final answers

You have a portfolio with a standard deviation of 22% and an expected return of 16%. 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 Deviation Correlation with Your Portfolio's Returns 0.2 0.5 Stock A Stock B 16% 16% 21% 19% III Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)