Page 1 of 1
An investor has a $6 million fully diversified portfolio. She subsequently inherits Wild Company common stock worth $3 m
Posted: Wed Apr 06, 2022 9:13 am
by 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 66 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