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You have a portfolio with a standard deviation of 24% and an expected return of 18%. You are considering adding one of the two stocks
You have a portfolio with a standard deviation of 24% 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 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock A 12% 23% 0.3 Stock B 12% 19% 0.7 Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)
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