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 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?

	Expected Return	Standard Deviation	Correlation with A
A	15%	47%	1.00
B	12%	40%	0.13
C	12%	40%	0.33

The expected return of the portfolio with stock B is

enter your response here%.

(Round to one decimal place.)