Here are the percentage returns on two stocks.

Month	Digital Cheese				Executive Fruit
January		14	%			6	%
February		5				1
March		6				4
April		8				14
May		6				2
June		4				6
July		4				4
August		7				3

a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.)

a-2. Which stock is the riskier if held on its own?

multiple choice 1

• 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.)

c. Is the variance more or less than half way between the variance of the two individual stocks?

multiple choice 2

• more than the 50%-50%

• less than the 50%-50%