a. Calculate the long-term volatility estimate for each of the three companies.

\begin{tabular}{|l|l|l|r|r|r|} \hline Dates & PEP & \multicolumn{1}{|l|}{ KDP } & \multicolumn{1}{|l|}{ KO } & \multicolumn{1}{l|}{ PORT } & \multicolumn{1}{l|}{ SP500 } \\ \hline T+1 & 0.01266744 & 0.01154707 & 0.01437127 & 0.01045763 & 0.01653961 \\ \hline T+2 & 0.01260637 & 0.01141208 & 0.0143771 & 0.01040199 & 0.01656487 \\ \hline T+3 & 0.01254796 & 0.01127897 & 0.01438289 & 0.01035147 & 0.01658984 \\ \hline T+4 & 0.01249211 & 0.01114772 & 0.01438864 & 0.01030561 & 0.01661452 \\ \hline T+5 & 0.01243871 & 0.01101831 & 0.01439436 & 0.010264 & 0.01663892 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|r|l|} \hline LTV & \multicolumn{1}{|l|}{ PEP } & \multicolumn{1}{l|}{ KDP } & \multicolumn{1}{l|}{ KO } & \multicolumn{1}{l|}{ Portfolio } & \multicolumn{1}{l|}{ SP500 } \\ \hline T+1 & 0.00016721 & 0.00018937 & 0.00018395 & 0.00011817 & 0.00020675 \\ \hline T+2 & 0.0001664 & 0.00018716 & 0.00018403 & 0.00011754 & 0.00020706 \\ \hline T+3 & 0.00016563 & 0.00018498 & 0.0001841 & 0.00011697 & 0.00020737 \\ \hline T+4 & 0.0001649 & 0.00018282 & 0.00018417 & 0.00011645 & 0.00020768 \\ \hline T+5 & 0.00016419 & 0.0001807 & 0.00018425 & 0.00011598 & 0.00020799 \\ \hline \end{tabular} \begin{tabular}{|l|l|l|r|r|r|} \hline Dates & PEP & \multicolumn{1}{|l|}{ KDP } & \multicolumn{1}{|l|}{ KO } & \multicolumn{1}{l|}{ PORT } & \multicolumn{1}{l|}{ SP500 } \\ \hline T+1 & 0.01266744 & 0.01154707 & 0.01437127 & 0.01045763 & 0.01653961 \\ \hline T+2 & 0.01260637 & 0.01141208 & 0.0143771 & 0.01040199 & 0.01656487 \\ \hline T+3 & 0.01254796 & 0.01127897 & 0.01438289 & 0.01035147 & 0.01658984 \\ \hline T+4 & 0.01249211 & 0.01114772 & 0.01438864 & 0.01030561 & 0.01661452 \\ \hline T+5 & 0.01243871 & 0.01101831 & 0.01439436 & 0.010264 & 0.01663892 \\ \hline \end{tabular} \begin{tabular}{|l|r|r|r|r|l|} \hline LTV & \multicolumn{1}{|l|}{ PEP } & \multicolumn{1}{l|}{ KDP } & \multicolumn{1}{l|}{ KO } & \multicolumn{1}{l|}{ Portfolio } & \multicolumn{1}{l|}{ SP500 } \\ \hline T+1 & 0.00016721 & 0.00018937 & 0.00018395 & 0.00011817 & 0.00020675 \\ \hline T+2 & 0.0001664 & 0.00018716 & 0.00018403 & 0.00011754 & 0.00020706 \\ \hline T+3 & 0.00016563 & 0.00018498 & 0.0001841 & 0.00011697 & 0.00020737 \\ \hline T+4 & 0.0001649 & 0.00018282 & 0.00018417 & 0.00011645 & 0.00020768 \\ \hline T+5 & 0.00016419 & 0.0001807 & 0.00018425 & 0.00011598 & 0.00020799 \\ \hline \end{tabular}