Question
Here are the return on two stocks. Digital Cheese Executive Fruit January +16 +9 February -3 +2 March +5 +6 April +7 +14 May -4
Here are the return on two stocks.
Digital Cheese Executive Fruit
January +16 +9
February -3 +2
March +5 +6
April +7 +14
May -4 +3
June +3 +7
July -2 -3
August -8 -2
a-1. Calculate the variance and standard deviation of each stock.
a-2. Which stock is riskier if held on its own?
b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks.
c. Is the variance more or less than halfway between the variance of the two individual stocks?
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
