There are two firms, Apple and McDonald's. Today's Apple stock price is $129.93. Today's McDonald's stock price

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There are two firms, Apple and McDonald's.

Today's Apple stock price is $129.93.

Today's McDonald's stock price is $263.53.

If you decided to buy the two stocks in 50-50 shares of a $1,000,000 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.

Related Book For answer-question

Corporate Finance A Focused Approach

ISBN: 978-1439078082

4th Edition

Authors: Michael C. Ehrhardt, Eugene F. Brigham

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Posted Date: Jan 06, 2023 02:00 AM

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There are two firms, Apple and McDonald's. Today's Apple stock price is $129.93. Today's McDonald's stock price

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Expert Answer:

Answer The portfolio of Apple and McDonalds stocks is able to reduce risk and increase the return be... View the full answer

Corporate Finance A Focused Approach

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