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You have a portfolio with a standard deviation of 30% and an expected return of 18%. You are considering adding one of the two stocks
You have a portfolio with a standard deviation of 30% 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 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 15% 25% 0.2 Stock B 15% 20% 0.6 Standard deviation of the portfolio with stock Ais % (Round to two decimal places.)
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