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  3. you have a portfolio with a standard deviation of

You have a portfolio with a standard deviation of 26% and an expected return of...

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Accounting

You have a portfolio with a standard deviation of 26% and an expected return of 18%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add?

Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock
Stock A 16% 21% 0.4
Stock B 16% 17% 0.7

Standard deviation of the portfolio with stock A is ____% (Round to two decimal places.)

Standard deviation of the portfolio with stock B is ____% (Round to two decimal places.)

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