Question
Here are the percentage returns on two stocks. Month Digital Cheese Executive Fruit January 14 % 6 % February 5 1 March 6 4 April
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%
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