Attached in images are the returns on two stocks:
a. Calculate the variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Digital Cheese Return Executive Fruit Return
Variance:
Standard Deviation:
b. Which stock is riskier if held on its own? Digital Cheese or Executive Fruit
c. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)
Jan.
Feb.
March
April
May
June
July
August
d. Is the variance more or less than halfway between the variance of the two individual stocks?
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