An investor has a $6 million fully diversified portfolio. She subsequently inherits Wild Company common stock worth $3 m

[answerhappygod]

An Investor Has A 6 Million Fully Diversified Portfolio She Subsequently Inherits Wild Company Common Stock Worth 3 M 1 (19.51 KiB) Viewed 65 times

An investor has a $6 million fully diversified portfolio. She subsequently inherits Wild Company common stock worth $3 million. Her financial advisor provides them with the following forecasted information: Expected annual return Std Dev of annual return Original Portfolio 0.10 0.15 Wild Company 0.12 0.18 The correlation coefficient of Wild stock returns with the original portfolio returns is 0.40. Assuming they keep the Wild stock, calculate the standard deviation of their new portfolio. O a. 0.0184 O b. 0.1448 O c. 0.1224 O d. 0.1541 O e. 0.1356