You are holding shares of SPY, a broad market index fund, currently worth $360,000. You just have inherited $30,000 of KO shares. What would be the Expected Return and St. Dev. of your portfolio if you decide to keep KO shares based on the information in the table below? Note: your new portfolio would be 92.3% invested into SPY and 7.7% into KO. Invstmt, $ Invstmnt, w Expected R Variance St.Dev. SPY $360,000 92.3% 14% 0.0529 23% KO $ 30,000 7.7% 16% 0.0729 27% Covariance 0.04347 Correlation 0.7 15.11% and 23.31% O 15.11% and 25.22% O 14.15% and 24.10% O 14.15% and 22.73% Based on the table above and your calculations for the previous question, should you keep or sell KO shares? Invstmt, $ Invstmnt, w Expected R Variance St.Dev. SPY 92.3% 14% 0.0529 23% $360,000 $ 30,000 KO 7.79% 1696 0.0729 27% Covariance 0.04347 Correlation 0.7 Sell ko, it is higher risk investment than what you have Sell KO, there is probably some Ko shares in the SPY fund anyway O Keep KO, it has higher sales than PEP O Keep ko, it increases the expected return and reduces risk at the same time