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Here are the returns on two stocks. Digital Cheese Executive Fruit January +17 +6 February 4 +1 March +6 +5 April +8 +15 May 5

Here are the returns on two stocks. Digital Cheese Executive Fruit January +17 +6 February 4 +1 March +6 +5 April +8 +15 May 5 +2 June +4 +4 July 3 4 August 9 3 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?

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