Yоur client hаs $70,000 invested in stоck A. She wоuld like to build а two-stock portfolio by investing аnother $30,000 in either stock B or C. She wants to minimize the portfolio’s standard deviation. Expected Return Standard Deviation Correlation With A A 18% 25% 1.0 B 15% 15% 0.5 C 15% 22% 0.3 Compute the standard deviation of each possible portfolio (i.e., the portfolio with stocks A and B, and the portfolio with stocks A and C). Which stock should she add, B or C? (6 points) What will the expected return of the recommended portfolio be? (2 points) The portfolio you recommended in part a has the lower standard deviation. Can we conclude that it also has the lower market risk (i.e., lower beta)? Explain briefly. (2 points)