Jake has a $1,000,000 invested in a fully diversified portfolio. He subsequently inherits common stock in XYZ Company worth $75,000. His financial advisor provided Jake with the following risk and return information. The correlation of XYZ and his original portfolio is 0.40. Original Portfolio XYZ Company Expected Return 6.7% 12.5% Volatility (Std Dev) 23.7% 29.5% Jake is considering selling the $75,000 of XYZ stock and acquiring $75,000 of ABC stock instead. ABC has the same expected return and risk as XYZ. Jake's wife comments "It doesn't matter whether you keep all of XYZ or replace it with ABC since the two companies have the same expected return and riska State whether his wife's comment is correct or not and why. (Hint: you don't need to do any calculations to answer these questions)