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You have a portfolio with a standard deviation of 20% and an expected return of 18%. You are considering adding one of the two stocks
You have a portfolio with a standard deviation of 20% and an expected return of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 40% of your money in the new stock and 60% of your money in your existing portfolio, which one should you add? Expected Return Standard Deviation Correlation with your portfolio Stock A 15% 15% 0.5 Stock B 15% 35% -0.2 Group of answer choices There is no difference in adding either one of the two stocks. Stock A Stock B
Expected Return | Standard Deviation | Correlation with your portfolio | |
Stock A | 15% | 15% | 0.5 |
Stock B | 15% | 35% | -0.2 |
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