In: Finance
Here are the returns on two stocks. Digital Cheese Executive Fruit
January +18 +8
February −4 +1
March +6 +5
April +8 +16
May −5 +2
June +4 +6
July −3 −4
August −9 −3
a-1. Calculate the variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
a-2. Which stock is the riskier if held on its own? Digital Cheese Executive Fruit
b. 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.)