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You have a portfolio with a standard deviation of 28% and an expected return of 20%. You are considering adding one of the two stocks
You have a portfolio with a standard deviation of 28% 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 14% 14% Standard Deviation 24% 16% Correlation with Your Portfolio's Returns 0.4 0.5 Stock A Stock B D Standard deviation of the portfolio with stock A is %. (Round to two decimal places.)
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