You have a portfolio with a standard deviation of 28% and an expected return of 16%. You are considering adding one of the two stocks in the following table. If 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? Stock A Stock B Expected Return 13% 13% Standard Deviation 21% 18% Correlation with Your Portfolio's Returns 0.2 0.5 Standard deviation of the portfolio with stock A is%. (Round to two decimal places.) Standard deviation of the portfolio with stock B is%. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) O A. Add B because the portfolio is less risky when B is added. OB. Add A because the portfolio is less risky when A is added. OC. Add either one because both portfolios are equally risky. ***

Fiandard devision of the portiolo with stoch A is is (Round to twe dechal places) A. Add 8 because the partifio is less riky when 8s added. a. Add A becaute the pontolo is less moxy wer A a addoc