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You have a portfolio with a standard deviation of 2 9 % and an expected return of 1 5 % . You are considering adding

You have a portfolio with a standard deviation of 29% and an expected return of 15%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add?
\table[[,\table[[Expected],[Return]],\table[[Standard],[Deviation]],\table[[Correlation with],[Your Portfolio's Returns]]],[Stock A,13%,23%,0.2],[Stock B,13%,18%,0.5]]
Standard deviation of the portfolio with stock A is %.(Round to two decimal places.)
Standard deviation of the portfolio with stock B is %.(Round to two decimal places.) Which stock should you add and why? (Select the best choice below.)
A. Add B because the portfolio is less risky when B is added.
B. Add A because the portfolio is less risky when A is added.
C. Add either one because both portfolios are equally risky.
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