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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

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 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 15% 23% 0.3
Stock B 15% 17% 0.6

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 would you add to your portfolio?

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