Review the example from the lecture about Umbrella Inc and Sunscreen Inc. Both companies have 10% return

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Review the example from the lecture about Umbrella Inc and Sunscreen Inc. Both companies have 10% return & 45% volatility and are perfectly negatively correlated. Assume you sell 50% of Umbrella and buy Sunscreen such that you now hold 50% of each stock.What is the return and risk of that portfolio?

Posted Date: May 18, 2024 05:07 PM

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Review the example from the lecture about Umbrella Inc and Sunscreen Inc. Both companies have 10% return

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