There are two firms, Apple and McDonald's. Today's Apple stock price is $457.95. Today's McDonald's stock price
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Question:
There are two firms, Apple and McDonald's.
Today's Apple stock price is $457.95.
Today's McDonald's stock price is $542.53.
If you decided to buy the two stocks in 50-50 shares of a $2,000,000 budget, is the portfolio able to reduce risk and increase the return better than holding either one of the stocks?
Please provide the details and analysis rationales.
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