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you for financial advice. Your grandma has only one stock in her portfolio. This stock has an expected return of 13% and a volatility of

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you for financial advice. Your grandma has only one stock in her portfolio. This stock has an expected return of 13% and a volatility of 25%. You went to Yahoo finance and looked up the S&P 500 as a proxy for the market portfolio. You find that the market has an expected return of 12% and a volatility of 18%. You also looked at treasury return from Morningstar and noted the risk-free rate is 4%. Assume that the CAPM assumptions hold in the market. Your grandma is trying to maintain her current expected return on the portfolio. What is the minimum volatility that you could help your grandma achieve by combining her only stock and the risk-free assets? (Enter your answer as a decimal, not a percentage. Do NOT round to less than three decimal places in the intermediate steps. Round your final answer to at least two decimal places.)

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