Here are the percentage returns on two stocks.

Month Digital Executive

Cheese Fruit

January 15% 9%

February -5% 1%

March 6% 4%

April 7% 15%

May -6% 2%

June 4% 4%

July -5% -5%

August -8% -4%

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 % ----------------- ------------------

b. Now calculate the variance and standard deviation of the returns on a portfolo 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 devation % ------------------