Question: $ Value Wi E (R) Variance St. Dev. SPY $ 420,000 89.36% 13.0% 0.0289 17.0% MGN S 50,000 10.64% 15.0% 0.0256 16.0% Covariance -0.00568 Correlation

$ Value Wi E (R) Variance St. Dev. SPY $ 420,000 89.36% 13.0% 0.0289 17.0% MGN S 50,000 10.64% 15.0% 0.0256 16.0% Covariance -0.00568 Correlation -0.20882 17. You are holding shares of SPY, a broad market index fund, currently worth $420,000. You just have inherited $50,000 of MGN shares. What would be the Expected Return of your portfolio if you decide to keep MGN shares based on the information in the table below? Note: your new portfolio would be 89.36% invested into SPY and 10.64% into MGN. A. 13.21% B. 14.00% C. 14.64% D. 14.89% 18. You are holding shares of SPY, a broad market index fund, currently worth $420,000. You just have inherited $50,000 of MGN shares. What would be the St. Dev. of your portfolio if you decide to keep MGN shares based on the information in the table below? Note: your new portfolio would be 89.36% invested into SPY and 10.64% into MGN. A. 22.29% B. 16.89% C. 16.50% D. 14.93% 19. Based on the information above, should you keep or sell MGN shares (if you do sell MGN shares, you will invest the proceeds into more SPY shares)? A. Sell MGN, it is higher risk investment than what you have B. Sell MGN, there is probably some MGN shares in the SPY fund anyway C. Keep MGN, it is better than NFLX D. Keep MGN, it increases the expected return and reduces risk at the same time

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