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What is the return and risk of that portfolio

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Reference no: EM133016186

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.

Assume you sell 25% of Umbrella Inc and buy Sunscreen Inc. such that you hold 75% Umbrella and 25% Sunscreen. What is the return and risk of that portfolio?

Reference no: EM133016186

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