Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. here are the returns on two stocks. \table[[,\tab

Here are the returns on two stocks. \table[[,\table[[Digital],[Cheese]],\table[[Executive],[Fruit]]],[January,+13,+6],[February,-3,+1],[March,+5,+4],[April,+7,+15],[May,-4,+2],[June,+3,+6],[July,-2,-3],[August,-8,-2]] Required: a-1. Calculate the...

90.2K

Verified Solution

Question

Accounting

Here are the returns on two stocks.
\table[[,\table[[Digital],[Cheese]],\table[[Executive],[Fruit]]],[January,+13,+6],[February,-3,+1],[March,+5,+4],[April,+7,+15],[May,-4,+2],[June,+3,+6],[July,-2,-3],[August,-8,-2]]
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 B
Calculate the variance and standard deviation of each stock.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
\table[[,\table[[Digital Cheese],[Retum]],\table[[Executive Fruit],[Return]]],[Variance,,%,],[Standard deviation,,,]]
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students