e following table contains monthly returns for Cola Co$.$ and Gas Co$.$ for $2013($the returns are cimal form, i$.$e$.,0\mathrm{.}035$ is $3\mathrm{.}5\%).$ Using this table and the fact that Cola Co$.$ and Gas Co$.$ have a cor $0\mathrm{.}0969,$ calculate the volatility $($standard deviation$)$ of a portfolio that is $60\%$ invested in Cola Co$.$s ested in Gas Co$.$ stock. Calculate the volatility by Using the formula:

Var$(R_p)=w_1^{2}SD(R_1{)}^2+w_2^{2}SD(R_2{)}^2+2w_1{w}_2$Corr$(R_1,R_2)SD(R_1)SD(R_2)$

Calculating the monthly returns of the portfolio and computing its volatility directly. How do your results compare?

volatility $($standard deviation$)$ of the portfolio is $2\mathrm{.}81\%.($Round to two decimal places.$)$

Calculating the monthly returns of the portfolio and computing its volatility directly.

volatiltiy $($standard deviation$)$ of the portfolio is $\%.($Round to two decimal places.$)$

How do your results compare? $($Select the best choice below.$)$