Your client has

$100,000

invested in stock A. She would like to build a two-stock portfolio by investing another

$100,000

in either stock B or C. She wants a portfolio with an expected return of at least

13.5%

and as low a risk as possible, but the standard deviation must be no more than 40%. What do you advise her to do, and what will be the portfolio expected return and standard deviation?

standard deviation must DU TIU MIUI Will 40%. Viiat UU yuu dUVISU Nei U U, and will will be lile B Expected Return 15% 12% 12% Standard Deviation 46% 40% 40% Correlation with A 1.00 0.12 0.35 The expected return of the portfolio with stock B is %. (Round to one decimal place.)