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You have a portfolio with a standard deviation of 25% and an expected return of 17%. You are considering adding one of the two stocks
You have a portfolio with a standard deviation of 25% and an expected return of 17%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Correlation with Expected Return 13% Standard Deviation Your Portfolio's Returns Stock A 25% 0.2 Stock B 13% 17% 0.5
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