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 existing portfolio, which one should you add?

	Expected Return	Standard Deviation	Correlation with Your Portfolio's Returns
Stock A	12%	25%	0.30%
Stock B	12%	16%	0.70%