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You have a portfolio with a standard deviation of 25% and an expected return of 20%. You are considering adding one of the two stocks

You have a portfolio with a standard deviation of 25% and an expected return of 20%. 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?

Expected Return standard deviation

Correlation with

Your Portfolio's Returns

stock a 15% 24% 0.2
stock b

15%

17% 0.6

Standard deviation of the portfolio with stock A is %.(Round to two decimal places.)

Standard deviation of the portfolio with stock B is %.(Round to two decimal places.)

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