You have a portfolio with a standard deviation of 28% and an expected return of t18%. You are considening adding one of the two stocks in the following table 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 Return Standard Deviation Correlation with Your Portfolio's Returns Stock A Stock B 12% 12% 23% 20% 02 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 28% and an expected return of t18%. You are considening adding one of the two stocks in the following table 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 Return Standard Deviation Correlation with Your Portfolio's Returns Stock A Stock B 12% 12% 23% 20% 02 0.7 Standard deviation of the portfolio with stock A is % (Round to two decimal places)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 25P

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