Question: Problem 11-19 Diversification (LO3) Here are the returns on two stocks, Digital Cheese +16 Executive Fruit +9 +2 16 +14 +5 +7 January February March

Problem 11-19 Diversification (LO3) Here are the returns on two stocks, Digital Cheese +16 Executive Fruit +9 +2 16 +14 +5 +7 January February March April May June July August +3 8 Required: 0-1. Calculate the variance and standard deviation of each stock 0-2. Which stock is riskler 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? Answer is not complete. Complete this question by entering your answers in the tabs below.

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