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Your client has $ 1 0 5 , 0 0 0 invested in stock A . She would like to build a two - stock

Your client has $105,000 invested in stock A. She would like to build a two-stock portfolio by investing another $105,000 in either stock B or C. She wants a portfolio with an expected return of at least 14.5% 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?
\table[[,Expected Return,Standard Deviation,Correlation with A],[A,15%,45%,1.00],[B,14%,36%,0.14],[C,14%,36%,0.27],[,,,]]
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