Review the example from the lecture about Umbrella Inc and Sunscreen Inc. Both companies have 10% return & 45% volatility and are perfectly negatively correlated.<\/p>
Assume you sell 50% of the Umbrella buy sunscreen such that you now hold 50% of each stock. What is the return and risk of that portfolio?<\/p>", "transcribed_text": "", "related_book": { "title": "Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective", "isbn": "1337614689, 1337614688, 9781337668262, 978-1337614689", "edition": "9th Edition", "authors": "James M. Wahlen, Stephen P. Baginski, Mark Bradshaw", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/1711.jpg", "uri": "\/textbooks\/financial-reporting-financial-statement-analysis-and-valuation-a-strategic-perspective-9th-edition-1711", "see_more_uri": "" }, "free_related_book": { "isbn": "9264245928", "uri": "\/textbooks\/oecd-reviews-of-pension-systems-mexico-1st-edition-978-9264245921-280170", "name": "Oecd Reviews Of Pension Systems Mexico", "edition": "1st Edition" }, "question_posted": "2024-06-05 15:08:25", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/mytube-com-tells-its-advertisers-that-45-of-its-users", "description": "MyTube.com tells its advertisers that 45% of its users are in the 17 to 25 age demographic, 35% are in the 26 to 45 demographic, and the remaining 20% are in the 46 and older demographic. 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