Your client has $

$100$

$,$

$000$

$$invested in stock A

$.$

$$She would like to build a

$$

$$two

$-$

stock portfolio by investing another $

$100$

$,$

$000$

$$in either stock B or C

$.$

$$She wants a portfolio with an expected return of at least

$14\mathrm{.}0$

$\%$

$$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

$16$

$\%$

$46$

$\%$

$1\mathrm{.}00$

B

$12$

$\%$

$40$

$\%$

$0\mathrm{.}16$

C

$12$

$\%$

$40$

$\%$

$0\mathrm{.}32$

The standard deviation of the portfolio with stock B is enter your response here$\%.($round to one decimal$)$