Your client has $$95,000$ invested in stock A$.$ She would like to build a two$-$stock portfolio by investing

another $$95,000$ in either stock B or $C.$ She wants a portfolio with an expected return of at least

$14\mathrm{.}5\%$ 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?

The expected return of the portfolio with stock $B$ is $14\mathrm{.}5\%.($Round to one decimal place.$)$

The expected return of the portfolio with stock $C$ is

$\%.($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. stock B stock C