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You have a portfolio with a standard deviation of and an expected return of 24% and an expected return of 20%. You are considering adding

You have a portfolio with a standard deviation of and an expected return of 24% and an expected return of 20%. 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? Standard deviation of the portfolio with stock A is__? Standard deviation of the portfolio with stock B is__?

Expected Return Standard Deviation Correlation with Your Portfolio's Returns

Stock A 16% 26% 0.3

Stock B 16% 20% 0.6

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