Show that when w=h/g and h and g are each dependent on n Wiener processes, the ith component of the volatility of w is the ith component of the volatility of h minus the ith component of the volatility of g. Use this to prove the result that if y is the volatility of U and oy is the volatility of V then the volatility of U/V is o+0-200 yoy. (Hint: Use the result in Footnote 7.)

AppendixLO1