Are her husband comments correct or incorrect

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Based on a conversation with her husband, Grace is considering selling the $100,000 of ABC stock and acquiring $100,000 of XYZ Company common stock instead.

XYZ stock has the same expected return and standard deviation as ABC stock. Her husband comments, "It doesn't matter whether you keep all of the ABC stock or replace it with $100,000 of the XYZ stock." Are her husband's comments correct or incorrect? Justify your response.

Reference no: EM131126413

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