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Standard deviation of the portfolio with stock A is ____%? Stock B is ____%? Which stock would you add to your portfolio? You have a

image text in transcribedStandard deviation of the portfolio with stock A is ____%? Stock B is ____%? Which stock would you add to your portfolio?

You have a portfolio with a standard deviation of 22% and an expected return of 18%. 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 Standard Correlation with Your Portfolio's Returns Return Deviation 12% Stock A 23% 0.2 Stock B 12% 19% 0.6

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