You have a portfolio with a standard deviation of 27% 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

Stock A 12% 26% .2

Stock B 12% 17% .6

Question

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.)