DROP DOWN SAYS STOCK B, OR STOCK C

Please note decimal places, thanks!

Your client has $96,000 invested in stock A. She would like to build a two-stock portfolio by investing another $96,000 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% 45% 1.00 B 12% 38% 0.15 12% 38% 0.35 The expected return of the portfolio with stock B is %. (Round to one decimal place.) The expected return of the portfolio with stock Cis%. (Round to one decimal place.) The standard deviation of the portfolio with stock B is %. (Round to one decimal place.) The standard deviation of the portfolio with stock C is ]%. (Round to one decimal place.) (Select from the drop-down menu.) You would advise your client to choose because it will produce the portfolio with the lower standard deviation