Please solve using Excel and show formulas. Here are the percentage returns on two stocks. Month Digital Cheese Executive Fruit January 15 % 7 % February –4 2 March 5 5 April 7 13 May –5 1 June 3 5 July –3 –3 August –9 –1 a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answers to 1 decimal places.) c. Is the variance more or less than half way between the variance of the two individual stocks? multiple choice more than the 50%-50%Not attempted less than the 50%-50%Not attempted

Please solve using Excel and show formulas. Here are the percentage returns on two stocks. Month Digital Cheese Executive Fruit January 15 % 7 % February –4 2 March 5 5 April 7 13 May –5 1 June 3 5 July –3 –3 August –9 –1 a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answers to 1 decimal places.) c. Is the variance more or less than half way between the variance of the two individual stocks? multiple choice more than the 50%-50%Not attempted less than the 50%-50%Not attempted

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter6: Risk And Return

Section: Chapter Questions

Problem 4P: An analyst gathered daily stock returns for Feburary 1 through March 31, calculated the Fama-French...

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Here are the percentage returns on two stocks. Month Digital Cheese Executive Fruit January 13 % 7 % February –4 2 March 7 5 April 9 15 May –5 1 June 5 7 July –3 –7 August –9 –5 a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) a-2. Which stock is the riskier if held on its own? b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answers to 1 decimal places.) c. Is the variance more or less than half way between the variance of the two individual stocks?
Here are the returns on two stocks. January February March April May June July August Digital Cheese +14 -4 +6 +8 -5 +4 -3 -9 Executive Fruit +8 +2 +5 +12 +3 +6 w At t -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? 4 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 percentage returns on two stocks. Digital Executive Month Cheese Fruit January February 14% 68 -3 1 March 6 4 April May 8 14 -4 2 June 6 July August -2 -4 -8 -2 a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.) Executive Fruit Digital Cheese Variance Standard deviation % a-2. Which stock is the riskier if held on its own? Digital Cheese
he last four years of returns for a stock are as shown here: LOADING... . a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. Question content area bottom Part 1 a. What is the average annual return? The average return is enter your response here%. (Round to two decimal places.) Part 2 b. What is the variance of the stock's returns? The variance of the returns is enter your response here. (Round to five decimal places.) Part 3 c. What is the standard deviation of the stock's returns? The standard deviation is enter your response here%. (Round to two decimal places.) Time Remaining: 00:26:16 pop-up content starts Data table (Click on the following icon in order…
The last four years of returns for a stock are as shown here: E a. What is the average annual return? b. What is the variance of the stock's returns? c. What is the standard deviation of the stock's returns? Note: Notice that the average return and standard deviation must be entered in percentage format. The variance must be entered in decimal format. ..... Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Year 1 2 3 4 Return - 4.3% + 27.9% + 12.3% + 3.6%
Here are the returns on two stocks. Digital Cheese Executive Fruit January +17 +6 February -4 +1 March +6 +5 April +8 +15 May -5 +2 June +4 +4 July -3 -4 August -9 -3 a. Calculate the variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Digital Cheese Return Executive Fruit Return Variance % % Standard Deviation % % b. Which stock is riskier if held on its own? c. 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.) d.…
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