Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Here are the returns on two stocks. Digital Cheese +16 Executive Fruit +9 +1 +16 January February March April May June July August to on
Here are the returns on two stocks. Digital Cheese +16 Executive Fruit +9 +1 +16 January February March April May June July August to on Ima ### Required: 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? Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 Reg B Rega Calculate the variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Digital Cheese Retum Executive Fruit Return Variance Standard deviation Req A1 Reg A2 Reg B Reqc Which stock is riskier if held on its own? Which stock is riskier if held on its own? Reg A1 Reg A2 Reg B Reqc Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) Month Portfolio Return January February March April May June July August Reg A1 Reg A1 Reg A2 Reg B ReqC Is the variance more or less than halfway between the variance of the two individual stocks? Is the variance more or less than halfway between the variance of the two individual stocks
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started