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Here are the returns on two stocks. Digital Cheese January +16 February -4 March +6 April +8 May -5 June +4 July -3 August -9
Here are the returns on two stocks.
Digital Cheese
January +16
February -4
March +6
April +8
May -5
June +4
July -3
August -9
Executive Fruit
January +9
February +1
March +7
April +16
May +2
June +7
July -4
August -3
a) 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 tgat 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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Finance A Quantitative Introduction
Authors: Nico Van Der Wijst
1st Edition
1107029228, 978-1107029224
