• 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.

Answer rating: 100% (QA)

To analyze whether a 5050 portfolio of Apple and McDonalds stocks can reduce risk and increase the return compared to holding either one of the stocks ... View the full answer