You have a portfolio with a standard deviation of 29% 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 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add?

Stock A:Expected Return 13% Standard Deviation 23% Correlation with Your Portfolio's Returns 0.3

Stock B: Expected Return 13% Standard Deviation 17% Correlation with Your Portfolio's Returns 0.7

1) Standard deviation of the portfolio with stock A is ___%. (Round to two decimal places.)

2) Standard deviation of the portfolio with stock B is ___%. (Round to two decimal places.)

3)Which stock should you add and why?(Select the best choice below.)

A. Add Upper A because the portfolio is less risky when Upper A is added.Add A because the portfolio is less risky when A is added.

B. Add Upper B because the portfolio is less risky when Upper B is added.Add B because the portfolio is less risky when B is added.

C. Add either one because both portfolios are equally risky.