Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Here are the percentage returns on two stocks. Digital Cheese 14% -5 6 Month January February March April May June July August Executive Fruit 6%
Here are the percentage returns on two stocks. Digital Cheese 14% -5 6 Month January February March April May June July August Executive Fruit 6% 1 4 14 2 8 -6 4 -4 WOON ences 0-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) Digital Cheese Executive Fruit Variance Standard deviation % Check my wer 3 0-2. Which stock is the riskier if held on its own? 10 points O Digital Cheese O Executive Fruit ebook b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answers to 1 decimal places.) Print Variance Standard deviation c. Is the variance more or less than half way between the variance of the two individual stocks? more than the 50%-50% less than the 50%-50%
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fc35c32943_691668fc35b93652.jpg)
![image text in transcribed](https://s3.amazonaws.com/si.experts.images/answers/2024/07/668fc35d10ac7_692668fc35c69595.jpg)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started