HW: Risk and Return \begin{tabular}{|l|l|l} \hline 1. \\ \hline 2. \\ \hline 3. \\ 4. \\ Assume that your cousin holds just one stock, Eastman Chemical Bonding (ECB), which he thinks has very little risk. You agree that the stock is relatively safe, \\ buildings (WCB). Both companies have had less variability than most other stocks over the past 5 years. Measured by the standard deviation of returns, by hov \\ much would your cousin's risk have been reduced if he had held a portfolio consisting of 90% in ECB and the remainder in WCB? (Hint: Use the sample \\ standard deviation formula.) \end{tabular}