Question 29 3.34 pts SPY Your Current Portfolio BA Your Portfolio after adding BA to it Summary Statistics Average 0.70% 1.04% 1.43% 1.09% Variance 0.0014 0.0022 0.0038 0.0020 St.Dev. 3.71% 4.64% 6.20% 4.43% Regression Analysis Summary intercept 0.00204 0.00793 0.00287 Beta 1 1.20562 0.92070 1.15489 0.000149 0.002676 0.000126 var (residuals) st. Dev. (residuals) 1.22% 5.17% 1.12% Rf 0.05% 0.0082 0.0150 0.0090 Treynor Index Sharpe Ratio 0.0065 0.1740 0.2142 0.2231 0.2350 Based on Information Ratio and Potential Sharpe Ratio Approach, if you decided to invest into SPY index, should you add BA stock to your SPY investment? No, Potential Sharpe Ratio of the portfolio will be reduced after adding BA stock to it Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.2635 Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.2319 Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.2231 Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.3398