Here are the returns on two stocks. Digital Cheese Executive Fruit January +15 +8 February -2 +1 March +4 +6 April +6 +16 May -3 +2 June +2 +6 July -1 -2 August -7 -1 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 A1 Req A2 Req B Req C Calculate the variance and standard deviation of each stock. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Executive Fruit Variance Standard deviation Digital Cheese Retum % Return %
Here are the returns on two stocks. Digital Cheese Executive Fruit January +15 +8 February -2 +1 March +4 +6 April +6 +16 May -3 +2 June +2 +6 July -1 -2 August -7 -1 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 A1 Req A2 Req B Req C Calculate the variance and standard deviation of each stock. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Executive Fruit Variance Standard deviation Digital Cheese Retum % Return %
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Here are the returns on two stocks. \table[[,\table[[Digital],[Cheese]],\table[[Executive],[Fruit]]],[January,+15,+8],[February,-2,+1],[March,+4,+6],[April,+6,+16],[May,-3,+2],[June,+2,+6],[July,-1,-2],[August,-7,-1]] 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 A1 Req A2 Req B Calculate the variance and standard deviation of each stock. Note: Do not round intermediate calculations. Round your answers to 2 decimal places. \table[[,\table[[Digital Cheese],[Retum]],\table[[Executive Fruit],[Return]],],[Variance,,%,%
Transcribed Image Text:Here are the returns on two stocks.
Digital
Executive
Cheese
Fruit
January
+15
+8
February
-2
+1
March
+4
+6
April
+6
+16
May
-3
+2
June
+2
+6
July
-1
-2
August
-7
-1
Required:
es
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 A1
Req A2
Req B
Req C
Calculate the variance and standard deviation of each stock.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
Executive Fruit
Variance
Standard deviation
Digital Cheese
Retum
%
Return
%
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