Here are the returns on two stocks.

	Digital Cheese	Executive Fruit
January	+19	+9
February	2	+1
March	+4	+4
April	+6	+13
May	3	+1
June	+3	+5
July	1	2
August	7	1

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.

Req A1

Calculate the variance and standard deviation of each stock.

Note: Do not round intermediate calculations. Round your answers to 2 decimal places.

	Digital Cheese Retum		Executive Fruit Return
Variance		%		%
Standard deviation

Req A2

	Which stock is riskier if held on its own?

Req B

Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks.

Note: 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

Req C

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?