Mary has a S600,000 fully diversified portfolio. She subsequently inherits SinTech Company common stock worth $400,000...

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Mary has a S600,000 fully diversified portfolio. She subsequently inherits SinTech Company common stock worth $400,000 from her father. Her financial adviser provided her with the following estimates: Expected annual Standard deviation of annual return return Original portfolio 8% 13% SinTech Company 18% 16% The correlation coefficient of SinTech Co. stock returns with the original portfolio retums is 0.2 and the return on risk-free asset is 5%. The inheritance changes Mary's overall portfolio and she is deciding whether to keep the SinTech Co. stock. Assuming she keeps the Sintech Co. stock: Required: Determine the expected return and standard deviation of the new portfolio. a You think Mary's new portfolio in (a) is still too risky. You try to advise her to include one bond ETF into her new portfolio. The information is as follows: Expected annual Standard deviation of Worth annual return return Bond ETF 4% $200,000 Correlation coefficients matrix: SinTech Bond ETF Original portfolio Company Original portfolio SinTech Company 0.1 1 Bond ETF -0.2 -0.7 1 b Justify your suggestion by calculating the portfolio expected return and standard deviation on this three-asset portfolio. Mary has a S600,000 fully diversified portfolio. She subsequently inherits SinTech Company common stock worth $400,000 from her father. Her financial adviser provided her with the following estimates: Expected annual Standard deviation of annual return return Original portfolio 8% 13% SinTech Company 18% 16% The correlation coefficient of SinTech Co. stock returns with the original portfolio retums is 0.2 and the return on risk-free asset is 5%. The inheritance changes Mary's overall portfolio and she is deciding whether to keep the SinTech Co. stock. Assuming she keeps the Sintech Co. stock: Required: Determine the expected return and standard deviation of the new portfolio. a You think Mary's new portfolio in (a) is still too risky. You try to advise her to include one bond ETF into her new portfolio. The information is as follows: Expected annual Standard deviation of Worth annual return return Bond ETF 4% $200,000 Correlation coefficients matrix: SinTech Bond ETF Original portfolio Company Original portfolio SinTech Company 0.1 1 Bond ETF -0.2 -0.7 1 b Justify your suggestion by calculating the portfolio expected return and standard deviation on this three-asset portfolio.