You have a portfolio with a standard deviation of

26%

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

20%

of your money in the new stock and

80%

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%	20%	0.6