Here are the percentage returns on two stocks.

Month Digital Cheese Executive fruit

january 15% 7%

february -3 1

march 5 4

april 7 13

may -4 2

june 3 5

july -2 -3

august -8 -2

a-1.Calculate the monthly variance and standard deviation of each stock.(Donot round intermediate calculations. Round your answer to 1 decimal place.)

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 thereturns on a portfolio that invests an equal amount each month in the two stocks.(Do not round intermediate calculations. Round your answer to 1 decimal place.)

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%