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Question: you have a portfolio with a standard deviation of 26...

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You have a portfolio with a standard deviation of 26% and an expected return of 20%. 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? Expected Standard Correlation with Return Deviation Your Portfolios Returns Stock A 14% 0.3 25% 14% 0.7 Stock B 20% Standard deviation of the portfolio with stock A is 22.80 Round to two decimal places Standard deviation of the portfolio with stock B is Round to two decimal places

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