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Date Cola Co. Gas Co. Jan 0.20% 0.30% Feb 7.20% 3.90% Mar 6.26% 3.70% Apr 7.10% 4.90% May 1.60% 5.70% June 4.90% 4.60% July 3.00%

Date Cola Co. Gas Co.
Jan 0.20% 0.30%
Feb 7.20% 3.90%
Mar 6.26% 3.70%
Apr 7.10% 4.90%
May 1.60% 5.70%
June 4.90% 4.60%
July 3.00% 0.70%
Aug 2.70% 6.40%
Sep 0.00% 0.90%
Oct 10.50% 10.20%
Nov 4.90% 6.70%
Dec 4.20% 1.50%

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The volatility (standard deviation) of the portfolio is %

The following table contains monthly returns for Cola Co. and Gas Co. for 2022: Using this table and the facts that Cola Co. has a standard deviation of return of 5.48%, Gas Co. has a standard deviation of return of 5.00%, and they have a correlation of 0.2749 , calculate the volatility (standard deviation) of a portfolio that is 75% invested in Cola Co. stock and 25% invested in Gas Co. stock. a. Calculate the volatility using the formula: Var(Rp)=wCola2SD(RCola)2+wGas2SD(RGas)+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

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