Suppose that the expected rate of return for Stock A is 10% and for Stock B is 15%. Standard deviations of returns for Stock A and Stock B are 15% and 18%, respectively. There is an investment opportunity for a portfolio composed of these two stocks only in the market. You expect 20% rate of return from such an investment. If the two stock are uncorrelated, what would be the portfolio standard deviation?

A)37%

B)38%

C)39%

D)40%

E) Other