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Business, 23.10.2021 16:10 isyssjones42

Elvin's investment portfolio consists of several types of stocks, bonds, and money market instruments. The portfolio has an overall standard deviation of 12%, a beta of 1.06, and a total return for the year of 11%. Elvin is considering adding one of two alternative investments to his portfolio. Stock A has a standard deviation of 13%, a beta of 0.87, and a correlation coefficient with the portfolio of 0.6. Stock B has a standard deviation of 11%, a beta of 0.97, and a correlation coefficient of 0.95. Which stock should Elvin consider adding to his portfolio, and why

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