$1$ point

AG has a $$900,000$ fully diversified portfolio. She subsequently inherits XYZ common stock worth

$$100,000.$ Her financial advisor provided her with the following information:

$($Please round the answer to three decimal places. For example, if you answer

is $0\mathrm{.}952\%,$ please fill $0\mathrm{.}952$ in the slot.$)$

The correlation coefficient of XYZ stock returns with the original portfolio returns is $0\mathrm{.}40.$ The

inheritance changes AG's overall portfolio. Assuming AG keeps the XYZ stock, calculate the expected

monthly return of her new portfolio which includes the XYZ stock.

$($Please round the answer to three decimal places. For example, if you answer is $0\mathrm{.}952\%,$ please fill $0\mathrm{.}952$ in the slot.$)$

Type your answer...

$1$ point

Following the previous AG question, calculate the covariance of XYZ stock returns with the original portfolio returns.

$($Please round the answer to five decimal places. e$.$g$.,0\mathrm{.}00014.)$

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$1$ point

Following the previous AG question, calculate the standard deviation of her new portfolio which includes the XYZ stock.

$($Please round the answer to two decimal places. For example, if you answer is $1\mathrm{.}95\%,$ please fill $1\mathrm{.}95$ in the slot.$)$

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$1$ point

Following the previous AG question, what is the annualized expected return of her new portfolio which includes the XYZ stock. $($Please round the answer to two decimal

places. For example, if you answer is $1\mathrm{.}95\%,$ please fill $1\mathrm{.}95$ in the slot.$)$

$1$ point

Following the previous AG question, what is the annualized standard deviation of her new portfolio which includes the XYZ stock. $($Please round the answer to two decimal

places. For example, if you answer is $1\mathrm{.}95\%,$ please fill $1\mathrm{.}95$ in the slot.$)$