You have a portfolio with a standard deviation of

28%

and an expected return of

17%.

You are considering adding one of the two shares in the table below. If after adding the shares you will have

25%

of your money in the new shares and

75%

of your money in your existing portfolio, which one should you add?

	Expected return	Standard deviation	Correlation with your portfolio's returns
Share A	16%	22%	0.4
Share B	16%	16%	0.5

Question content area bottom

Part 1

Standard deviation of the portfolio with share A is

enter your response here%.

(Round to two decimal places.)

Part 2

Standard deviation of the portfolio with share B is

enter your response here%.

(Round to two decimal places.)

Part 3

Which share should you add and why?(Select the best choice below.)