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Here are the returns on two stocks. ...

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Finance

Here are the returns on two stocks.

Digital Cheese Executive Fruit
January +17 +9
February 2 +1
March +4 +5
April +6 +15
May 3 +2
June +2 +5
July 1 2
August 7 1

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

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