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Your client has $98.000 invested in stock A She would like to build a two-stock portfolio by investing another $98 000 in either stock B

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Your client has $98.000 invested in stock A She would like to build a two-stock portfolio by investing another $98 000 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 possble, but the standard deviation must be no more than 40 %. What do you advise er to do, and what will be the portfolio expected return and standard deviation? Standard Deviation 450 Correlation with A Expected Return 15% A acac 033 The expected return of the portfolio with stock B is (Round to one decimal place.) (Round lo one decimal place.) The expecled relurn of the portfolio wilh slock C is The slandard deviation of the porfolio wilh stock B is (ROund tn one decimal clace 1 The standsrd deviation of the portfolio with stock C is%. (Round to one decimal place.) becauseilwill produce the porlfolio with the lower slandard devialion (Select hom the drop-down menu.) You would advise your clienl to choose -2

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