Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me with the variance in part B. I have tried 30 and 0.30, both are incorrect. Here are the percentage returns on two

Please help me with the variance in part B. I have tried 30 and 0.30, both are incorrect.

image text in transcribedimage text in transcribed

Here are the percentage returns on two stocks. Digital Cheese 15% Executive Fruit 7% Month January February March April May June Cowbvou UN July August a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Answer is complete and correct. Digital Cheese 47.5 6.9 Executive Fruit 23.2 Variance Standard deviation 4.8 a-2. Which stock is the riskier if held on its own? Digital Cheese Executive Fruit b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Answer is complete but not entirely correct. 0.3 Variance Standard deviation 5.5 Here are the percentage returns on two stocks. Digital Cheese 15% Executive Fruit 7% Month January February March April May June Cowbvou UN July August a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Answer is complete and correct. Digital Cheese 47.5 6.9 Executive Fruit 23.2 Variance Standard deviation 4.8 a-2. Which stock is the riskier if held on its own? Digital Cheese Executive Fruit b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answer to 1 decimal place.) Answer is complete but not entirely correct. 0.3 Variance Standard deviation 5.5

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Investment Science

Authors: David G. Luenberger

1st International Edition

0195391063, 9780195391060

More Books

Students also viewed these Finance questions