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correlation of -0.0593 , calculate the volatility (standard deviation) of a portfolio that is 55% invested in Cola Co. stock and 45% invested in Gas
correlation of -0.0593 , calculate the volatility (standard deviation) of a portfolio that is 55% invested in Cola Co. stock and 45% invested in Gas Co. stock. a. Calculate the volatility using the formula: Var(Rp)=wCola2SD(RCola)2+wGas2SD(RGas)2+2wColawGasCorr(RCola,RGas)SD(RCola)SD(RGas) b. Calculating the monthly returns of the portfolio and computing its volatility directly. c. How do your results compare? a. Calculate the volatility using the formula: Var(Rp)=wCola2SD(RCola)2+wGas2SD(RGas)2+2wColawGasCorr(RCola,RGas)SD(RCola)SD(RGas) The volatility (standard deviation) of the portfolio is \%. (Round to two decimal places.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)
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