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the standard deviation must be no more than 40%. What do you advise her to do, and what will be the Your client has $100,000
the standard deviation must be no more than 40%. What do you advise her to do, and what will be the Your client has $100,000 invested in stock A. She would like to build a two-stock portfolio by investing another $100,000 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, portfolio expected return and standard deviation? A B Expected Return 16% 13% 13% Standard Deviation 46% 40% 40% Correlation with A 1.00 0.16 0.27 The expected return of the portiolio 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%. (Round to one decimal place.) 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 because it will produce the portfolio with the lower standard deviation
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