You have a portfolio with a standard deviation of

20 %20%

and an expected return of

16 %16%.

You are considering adding one of the two stocks in the following table. If after adding the stock you will have

25 %25%

of your money in the new stock and

75 %75%

of your money in your existing portfolio, which one should you add?

	Expected Return	Standard Deviation	Correlation with Your Portfolio's Returns
Stock A	1515%	2626%	0.40.4
Stock B	1515%	1717%	0.50.5