8. The standard deviation is often used by investors to measure the risk of a stock or a stock portfolio. The basic idea is that the standard deviation is a measure of volatility
Consider the following two stock portfolios and their respective returns (in percent) over the last six months. Questions: a) Calculate the mean percent returns, range, sample standard deviation and sample variance for the six percent-returns of both stock portfolios. Round your answers to 3 decimal places.
b) Compare the final values of the portfolio during the six-month period. Describe any trend or trends?
c) Compare the range and the standard deviation of the six returns of both portfolios. Which stock portfolio is considered more volatile? Explain why.