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The drop down options are Stoc B or Stock C Your client has $104,000 invested in stock A. She would like to build a two-stock

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Your client has $104,000 invested in stock A. She would like to build a two-stock portfolio by investing another $104,000 in either stock B or C. She wants a portfolico with an expected return of at least 14.0% and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation? Expected Return 15% 13% 13% Standard Deviation 50% 36% 36% Correlation with A 1.00 0.16 0.31 The expected return of the portfolio with stock B is % (Round to one decimal place.) The expected return of the portfolio with stock C is %. (Round to one decimal place.) The standard deviation of the portfolio with stock B is % The standard deviation of the portfolio with stock C is % (Round to one decimal place.) (Select from the drop-down menu.) You would advise your client to choose (Round to one decimal place.) because it will produce the portfolio with the lower standard deviation Enter your answer in each of the answer boxes

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