Your client has

$104,000

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

$104,000

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

14.0%

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?

The expected return of the portfolio with stock B is %

The expected return of the portfolio with Stock C is %

The standard deviation of the portfolio with stock B is %

The standard deviation of the portfolio with Stock C is %