Standard deviation of the portfolio with stock A is _____%

?(Round to two decimal? places.)

Standard deviation of the portfolio with stock B is ______%

?(Round to two decimal? places.)

Which stock should you add and? why????(Select the best choice? below.)

A. Add B because the portfolio is less risky when B is added.

B. Add A because the portfolio is less risky when A is added.

C. Add either one because both portfolio are equally risky.

You have a portfolio with a standard deviation of 28% and an expected return of 19%. 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 14% 14% Standard Deviation 23% 18% Correlation with Your Portfolio's Returns 0.3 0.6 Stock A Stock B