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On the basis of conversation with her husband, Grace is considering selling the $100,000 of ABC stock and acquiring $100,000 of XYZ company stock. XYZ
On the basis of conversation with her husband, Grace is considering selling the $100,000 of ABC stock and acquiring $100,000 of XYZ company stock. XYZ stock has the same expected return and standard deviation as ABC stock. Her husband comments, It doesnt matter whether you keep all of the ABC stock or replace it with $100,000 of XYZ stock". State whether her husbands comment is correct or incorrect. Justify your answer.
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