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. (Do not round intermediate calculations. Round your answer to 1 decimal place.)

a-2. Which stock is the riskier if held on its own? Digital Cheese or 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 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% or less than the 50%-50%