Question
Here are the returns on two stocks. Digital Cheese Executive Fruit January +16 +9 February -2 +1 March +4 +5 April +6 +14 May -5
Here are the returns on two stocks.
| Digital Cheese | Executive Fruit | |
| January | +16 | +9 |
| February | -2 | +1 |
| March | +4 | +5 |
| April | +6 | +14 |
| May | -5 | +3 |
| June | +2 | +6 |
| July | -1 | -2 |
| August | -7 | -1 |
a. Calculate the variance and standard deviation of each stock.
| Digital Cheese Return | Executive Fruit Return | |
| Variance | ???% | ???% |
| Standard Deviation | ??? | ??? |
b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks.
| Month | Portfolio Return |
| January | |
| February | |
| March | |
| April | |
| May | |
| June | |
| July | |
| August |
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
Enron And World Finance A Case Study In Ethics
Authors: P. Dembinski, C. Lager, A. Cornford, J. Bonvin
1st Edition
1403947635, 978-1403947635
