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You have a portfolio with a standard deviation of 26% and an expected return of 17%. You are considering adding one of the two stocks

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You have a portfolio with a standard deviation of 26% 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 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Expected Standard Correlation with Return Deviation Your Portfolio's Returns Stock A 16% 21% 03 Stock B 16% 16% 0.7

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