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What is the measure of each stock contribution to risk

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Reference no: EM133019143

Question - Review the example from the lecture about Umbrella Inc and Sunscreen Inc. Both companies have 10% return & 45% volatility and are perfectly negatively correlated.

The risk of each stock (Sunscreen or Umbrella) by ITSELF is the its standard deviation, which is this example is 45%.

What is the measure of each stock's contribution to risk when held together in a portfolio?

Reference no: EM133019143

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