Here are the returns on two stocks Digital Cheese Executive Fruit January 1 4 8 February 4 2 March 6 5 April 8 1 2 May 5 3 June 4 6 July 3 4 August 9 3 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 ...

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Here are the returns on two stocks. Digital Cheese Executive Fruit January + 1 4 + 8

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Here are the returns on two stocks.

Digital Cheese Executive Fruit

January

+ 14 + 8

February

4 + 2

March

+ 6 + 5

April

+ 8 + 12

May

5 + 3

June

+ 4 + 6

July

3 4

August

9 3

Required:

- 1 .

Calculate the variance and standard deviation of each stock.

- 2 .

Which stock is riskier if held on its own?

.

Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks.

.

Is the variance more or less than halfway between the variance of the two individual stocks?

Posted Date: May 19, 2024 01:12 AM

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Here are the returns on two stocks. Digital Cheese Executive Fruit January + 1 4 + 8

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