Gas Co. The following table contains monthly returns for Cola Co. and Gas Co. for 2010 (the retums are shown in decimal form, i.e., 0.035 is 3.5%). Using this table and the fact that Cola Co. and Gas Co. have a correlation of 0.6084, calculate the volatility (standard deviation of a portfolio that is 55% invested in Cola Co stock and 45% invested in Gas Co stock. Calculate the volatility by a. Using the formula Var(Ro) = w; SD (R1) 2+w? SD (R2) +2W, W2 Corr (R4, R2) SD (R4) SD (R2) Data Table X b. Calculating the monthly returns of the portfolio and computing its volatility directly. c. How do your results compare? Month Cola Co. a. Using the formula: January - 0.1084 -0.0600 Var(Ro) = w} SD (R4) 2 + w SD (R2) +2w, wz Corr (R.R3) SD (R1) SD (R2) February 0.0236 0.0128 The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.) March 0.0660 -0.0186 April 0.0201 -0.0190 May 0.1836 0.0740 -0.0122 -0.0026 July 0.0225 0.0836 August -0.0689 -0.0246 September -0.0604 -0.0200 October 0.1361 0.0000 November 0.0351 0.0468 December 0.0054 0.0222 June Print Done