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You have a portfolio with a standard deviation of 28% and an expected return of 15%. You are considering adding one of the two stocks

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You have a portfolio with a standard deviation of 28% and an expected return of 15%. You are considering adding one of the two stocks in the following table. It 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 12% 24% 0.3 Stock 12% 20% 0.7 Standard deviation of the portfolio with stock As (Round to two decimal places) Standard deviation of the portfolio with stocks (Round to two decimal places) Which stock should you add and why? (Select the best choice below) BA Add A because the portfolio is loss risky when A is added OB. Add B because the portfolio is less risky when is added OC. Add either one because both portfolios are equally risky

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