a - 1 . Calculate the variance and standard deviation of each stock. a - 2 .

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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?

Here are the returns on two stocks.

Digital Cheese Executive Fruit

January $+ 17 + 7$

February $- 3 + 2$

March $+ 5 + 4$

April $+ 7 + 15$

May $- 4 + 3$

June $+ 3 + 5$

July $- 2 - 3$

August $- 8 - 2$

Posted Date: May 11, 2024 05:20 AM

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a - 1 . Calculate the variance and standard deviation of each stock. a - 2 .

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