You have a portfolio with a standard deviation of $22\%$ and an expected return of $20\%.$ You are considering adding one of the two stocks in the following table. If after adding the stock you will have $20\%$ of your money in the new stock and $80\%$ of your money in your existing$$ portfolio, which one should you$$ add?

Expected

Return

Standard

Deviation

Correlation with

Your$$ Portfolio's Returns

Stock A

$16\%$

$22\%$

$0\mathrm{.}3$

Stock B

$16\%$

$16\%$

$0\mathrm{.}7$

Question content area bottom

Part $1$

Standard deviation of the portfolio with stock A is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $2$

Standard deviation of the portfolio with stock B is

$$

enter your response here$\%.($Round to two decimal$$ places.$)$

Part $3$

Which stock should you add and$$ why?$($Select the best choice$$ below.$)$

A$.$Add Upper A because the portfolio is less risky when Upper A is added.

Add A because the portfolio is less risky when A is added.

B$.$Add Upper B because the portfolio is less risky when Upper B is added.

Add B because the portfolio is less risky when B is added.

C$.$

Add either one because both portfolios are equally risky.