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a . Calculate the monthly variance and standard deviation of each stock. Which stock is the riskier if held on its own? b . Now

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Calculate the monthly variance and standard deviation of each stock. Which stock is the riskier if held on its own?

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Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks.

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Is the variance more or less than halfway between the variance of the two individual stocks?

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