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Please see question below, thank you!! Ms. York's entire stock portfolio currently worth $500,000 is invested in an index fund [portfolio] that tracks the S&P

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Please see question below, thank you!!

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Ms. York's entire stock portfolio currently worth $500,000 is invested in an index fund [portfolio] that tracks the S&P 500 index. The expected rate of return of the index fund is 9.5% and standard deviation is 18% per year. The one year riskfree rate is 2%. Now Ms. York receives a strongly favorable security analyst's report on Blueberry Inc. The analyst projects a return of 25%. Blueberry Inc. has a high volatility (40% standard deviation} but its correlation coefcient with the S&P 500 is only 0.3- Assume the analyst's forecast is unbiased and assume that the index fund tracks the SEEP 500 very well. Should Ms. York sell part of her index fund holdings and invest in Blueberry 1116-? If so, how much should she invest in Blueberry? Note that le. York can borrow or lend at the 2% riskfree rate

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