Here are the returns on two stocks.

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 A$2$

Calculate the variance and standard deviation of each stock.

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