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You have a portfolio with a standard deviation of 28% and an expected return of 18%. You are considering adding one of the two stocks

You have a portfolio with a standard deviation of 28% and an expected return of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existingportfolio, which one should youadd?

Expected Return Standard Deviation Correlation with YourPortfolio's Returns

Stock A 15% 25% 0.4

Stock B 15% 16% 0.6

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