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Here are the percentage returns on two stocks. Digital Executive Month Cheese Fruit January 17% 9% February -3 1 March 5 5 April 6
Here are the percentage returns on two stocks. Digital Executive Month Cheese Fruit January 17% 9% February -3 1 March 5 5 April 6 14 May -4 2 June July August 3 -2 5 -8 -4 -2 a-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 % a-2. Which stock is the riskier if held on its own? Digital Cheese Executive Fruit 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.) 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% O less than the 50%-50%
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