Question: (Quantitative Question) You have a portfolio with a standard deviation of 30% and an expected return of 19%. You are considering adding one of the

 (Quantitative Question) You have a portfolio with a standard deviation of

(Quantitative Question) You have a portfolio with a standard deviation of 30% and an expected return of 19%. You are considering adding one of the two stocks in the table below. After adding the stock you will have 20% of your money in the new stock and 80% in your existing portfolio Standard Correlation with your Expected return Deviation portfolio's returns Stock A 1396 125% 0.2 Stock B 13% 20% 0.5 Answer the following questions: 1. Calculate the expected return and volatility (in %6) If Stock A is the new stock added. Write the answers (rounded to two decimal places) both in the space provide below and also on pages on which you will show your work. a. Portfolio Expected Return % b. Portfolio Standard Devitation of Returns il . Calculate the expected return and volatility (in %6) if Stock B is added. Write the answers (rounded to two decimal places) both in the space provide below and also on pages on which you will show your work. a. Portfolio Expected Return b. Portfolio Standard Devitation of Returns 96 HII. Which one should you add? Explain

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