Consider again a situation where you are an investment advisor and you have a client, Scotty M., who, thanks to your careful guidance and advice, holds a very well diversified portfolio. The value of that portfolio stands at $400,000. You estimate that its expected return is 6.7 percent and its standard deviation is 15%. Scotty M. comes to you with great news: She received another portfolio as a gift from family, valued at $100,000. After studying the position-level data of that new portfolio, you forecast its expected return at 12.5% and its standard deviation at 29%. You also estimate that the correlation coefficient between Scotty's original portfolio and this new, gifted one is 0.3 . Scotty shares that she is a bit skeptical of her family's investment skills. After some research on Morningstar, she identifies a fund she loves, with mission and investment philosophy very much aligned with her own. She considers selling the portfolio she received as a family gift and investing the entirety of the $100,000 proceeds into the Morningstar fund. However, she soon realizes that the expected return and standard deviation of the Morningstar fund is the same as the expected return and standard deviation of the family gift. She exclaims: "It doesn't matter if I keep the family gift or replace it with the Morningstar fund!" Is her comment correct? Please explain. PLEASE CLEARLY STATE YOUR ANSWERS AND EXPLAIN YOUR REASONING IN THE BOX BELOW TO RECEIVE CREDIT