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You have a portfolio with a standard deviation of 22% and an expected return of 19%. You are considering adding one of the two shares
You have a portfolio with a standard deviation of 22% and an expected return of 19%. You are considering adding one of the two shares in the table below. If after adding the shares you will have 30% of your money in the new shares and 70% of your money in your existing portfolio, which one should you add? Correlation with your portfolio's returns Expected Standard return deviation 13% 22% 17% Share A Share B 0.3 0.7 13% Standard deviation of the portfolio with share A is %. (Round to two decimal places.) Standard deviation of the portfolio with share B is %. (Round to two decimal places.) Which share should you add and why? (Select the best choice below.) O A. Add A because the portfolio is less risky when A is added. O B. Add B because the portfolio is less risky when B is added
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