Please find Standard Deviation of Stock A and Stock B You have a...
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Finance
Please find Standard Deviation of Stock A and Stock B
You have a portfolio with a standard deviation of 21% and an expected return of 15%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return 16% 16% Standard Deviation 24% 17% Correlation with Your Portfolio's Returns 0.2 0.6 Stock A Stock B
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