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Anne Grace has a $900000 diversified portfolio. She subsequently inherits ABC Company common stock worth $100 000. Her financial adviser provided her with the following

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Anne Grace has a $900000 diversified portfolio. She subsequently inherits ABC Company common stock worth $100 000. Her financial adviser provided her with the following estimates: The correlation coefficient of the ABC stock returns with the original returns is 0.40. Please answer with monthly expected returns and monthly standard deviations: you do not need to annualise the expected returns or standard deviations. The inheritance changes Grace's overall portfolio and she is deciding whether to keep the ABC stock. Assuming Grace keeps the ABC stock, calculate the expected return of her new portfolio which includes the ABC stock. List your answer in percent, rounded to 3 decimal places (i.e. 3.294, not 0.03294). Do not use a percent (\%) sign. The margin for error is 0.002

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