You have a portfolio with a standard deviation of

21%

and an expected return of

16%.

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%	24%	0.3
Stock B	16%	17%	0.7

Question content area bottom

Part 1

Standard deviation of the portfolio with stock A is

enter your response here%.

(Round to two decimal places.)

You have a portfolio with a standard deviation of 21% and an expected return of 16%. 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? Standard deviation of the portfolio with stock A is \%. (Round to two decimal places.)