You have a portfolio with a standard deviation of 25% and an expected return of 21%. 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? Why? Explain.

Expected Return Standard Deviation Correlation with Your Portfolio's Returns

Stock A 16% 17% 0.5

Stock B 16% 15% 0.3