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Here are the returns on two stocks. Digital CheeseExecutive FruitJanuary+18+8February4+1March+6+5April+8+16May5+2June+4+6July34August93 Required: a-1. Calculate the variance and standard deviation of each stock. a-2. Which stock is

Here are the returns on two stocks.

Digital CheeseExecutive FruitJanuary+18+8February4+1March+6+5April+8+16May5+2June+4+6July34August93

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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