Here are the returns on two stocks.

		Digital Cheese			Executive Fruit
January			+19			+8
February			3			+1
March			+5			+4
April			+7			+17
May			4			+2
June			+3			+4
July			2			3
August			8			2

a-1. Calculate the variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

a-2. Which stock is the riskier if held on its own?

• Digital Cheese

• Executive Fruit

b. 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.)

c. Is the standard deviation more or less than half way between the variance of the two individual stocks?