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Problem 1 1 - 1 9 Diversification ( LO 3 ) Here are the returns on two stocks. table [ [ , table

Problem 11-19 Diversification (LO3)
Here are the returns on two stocks.
\table[[,\table[[Digital],[Cheese]],\table[[Executive],[Fruit]]],[January,+14,+7],[February,-3,+1],[March,+5,+4],[April,+7,+13],[May,-4,+2],[June,+3,+5],[July,-2,-3],[August,-8,-2]]
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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