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You have a portfolio with a standard deviation of 21% 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 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 14% 14% Standard Deviation 22% 19% Correlation with Your Portfolio's Returns ***** 0.4 0.7 Standard deviation of the portfolio with stock A is%. (Round to two decimal places.) You have a portfolio with a standard deviation of 21% 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 20% of your money in the new stock and 80% of your money in your existing portfolio, which one should you add? Stock A Stock B Expected Return 14% 14% Standard Deviation 22% 19% Correlation with Your Portfolio's Returns ***** 0.4 0.7 Standard deviation of the portfolio with stock A is%. (Round to two decimal places.)
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