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You have a portfolio with a standard deviation of 36% and an expected return of 5.64%. You are considering adding one of the two stocks

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You have a portfolio with a standard deviation of 36% and an expected return of 5.64%. 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, and what is the expected return and standard deviation of the resulting portfolio? Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock A 15% 25% 0.2 Stock B 15% 20% 0.6

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