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This project analyzed and contrasted the risk and diversification benefits of two different two-asset portfolios: a traditional 60% SPY / 40% TLT mix and a tech-focused 50% AAPL / 50% MSFT portfolio. By calculating metrics like standard deviation, beta, and correlation, and using visual tools like residual plots, the group demonstrated that the SPY/TLT portfolio exhibited significantly lower volatility and risk (beta < 1) due to the negative correlation between stocks and long-term treasuries. Conversely, the AAPL/MSFT portfolio showed much higher volatility, higher market sensitivity (beta > 1), and strong positive correlation, offering limited diversification benefits.