Abigail Jones has a $700,000 fully diversified portfolio. She subsequently inherits JF Inc. common stock worth $300,000. Her financial advisor provided the following estimates: Risk and return characteristics Exp Nonthly Original portfolio JF Inc. 0.65% 1.20% monthly returns 2.30% 2.95% The correlation coefficient of JF Inc stock returns with the original portfolio is 0.35 a. b. the inheritance changes Jones' overall portfolio and she is deciding to keep the JF Inc stock. Assuming she keeps the stock, calculate: i. expected return of the new portfolio which includes JF stock ii. covariance of the JF stock returns with the original portfolio returns iii. standard deviation of the new portfolio which includes JF stock if Jones sells the JF stock, she will invest the proceeds in risk free government securities yielding 0.25% monthly. Assuming Jones sells the stock and replaces it with government securities, calculate: i. expected return of the new portfolio which includes govt securities ii. covariance of the govt security returns with the original portfolio returns iii. Standard deviation of the new portfolio which includes govt securities C. Determine whether the beta of her new portfolio which includes the government securities will be higher or lower than the beta of her original portfolio. Abigail Jones has a $700,000 fully diversified portfolio. She subsequently inherits JF Inc. common stock worth $300,000. Her financial advisor provided the following estimates: Risk and return characteristics Exp Nonthly Original portfolio JF Inc. 0.65% 1.20% monthly returns 2.30% 2.95% The correlation coefficient of JF Inc stock returns with the original portfolio is 0.35 a. b. the inheritance changes Jones' overall portfolio and she is deciding to keep the JF Inc stock. Assuming she keeps the stock, calculate: i. expected return of the new portfolio which includes JF stock ii. covariance of the JF stock returns with the original portfolio returns iii. standard deviation of the new portfolio which includes JF stock if Jones sells the JF stock, she will invest the proceeds in risk free government securities yielding 0.25% monthly. Assuming Jones sells the stock and replaces it with government securities, calculate: i. expected return of the new portfolio which includes govt securities ii. covariance of the govt security returns with the original portfolio returns iii. Standard deviation of the new portfolio which includes govt securities C. Determine whether the beta of her new portfolio which includes the government securities will be higher or lower than the beta of her original portfolio