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the expected return of the portfolio with stock B and stock C Your client has $103,000 invested in stock A. She would like to build

the expected return of the portfolio with stock B and stock Cimage text in transcribed

Your client has $103,000 invested in stock A. She would like to build a two-stock portfolio by investing another $103,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5% 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 Standard Deviation Correlation with A A 15% 48% 1.00 B 14% 38% 0.14 14% 38% 0.27 The expected return of the portfolio with stock B is %. (Round to one decimal place.)

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