Here are the returns on two stocks. Digital Cheese +16 Executive Fruit +9 January February March -4 +1 April May June July August +6 +8 -5 +4 +7 +16 +2 +7 -4 -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 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? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Is the variance more or less than halfway between the variance of the two individual stocks? 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 +16 Executive Fruit +9 January February March -4 +1 April May June July August +6 +8 -5 +4 +7 +16 +2 +7 -4 -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 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? Complete this question by entering your answers in the tabs below. Req A1 Req A2 Req B Req C Is the variance more or less than halfway between the variance of the two individual stocks? Is the variance more or less than halfway between the variance of the two individual stocks?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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hi there, i need requirement C. Thankss
Transcribed Image Text:Here are the returns on two stocks.
Digital
Cheese
Executive
Fruit
+9
January
February
March
+16
-4
+1
+6
+7
April
Мay
June
+8
-5
+16
+2
+4
+7
July
August
-3
-9
-4
-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 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?
Complete this question by entering your answers in the tabs below.
Req A1
Req A2
Req B
Req C
Is the variance more or less than halfway between the variance of the two individual stocks?
Is the variance more or less than halfway between the variance of the two individual stocks?
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