19. Diversification. Here are the returns on two stocks. ( LO113 ) a. Calculate the...
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19. Diversification. Here are the returns on two stocks. ( LO113 ) a. Calculate the variance and standard deviation of each stock. 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
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