Linda Simpson has a $1,000,000 fully diversified portfolio

(24) Linda Simpson has a $1,000,000 fully diversified portfolio. She subsequently inherits ABC Company common stock worth $250,000. Her financial adviser provided her with the following estimates: Original Portfolio Expected monthly returns Standard deviations ABC Company 1.00% 2.75% 1.55% 3.10% The correlation coefficient of ABC stock returns with the original portfolio returns is .65. a. Assuming Linda keeps the ABC stock, calculate the expected return and standard deviation of her new portfolio. Show your work. b. Assuming that Linda sells the ABC stock and invests the proceeds in risk-free government securities yielding 0.25% monthly, calculate the expected return and standard deviation of her new portfolio. Show your work