Month. Coca co. Gas co

January. -.0210. .0280

Feb. .0000. -.0050

March -.2000. -.0180

April. .0090. .0280

May. -.0310. .0840

June. -.0840. -.0460

July. -.1190. .0820

Aug. -.0160. .0460

Sept. .0550. .0300

Oct. -.0110. .0140

Nov. -.0380. .0290

Dec. -.0220. .0740

The following table contains monthly returns for Cola Co. and Gas Co. for 2013 (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 -0.0969 , calculate the volatility (standard deviation) of a portfolio that is 65% invested in Cola Co. stock and 35% invested in Gas Co. stock. Calculate the volatility by: a. Using the formula: Var(Rp)=w12SD(R1)2+w22SD(R2)2+2w1w2Corr(R1,R2)SD(R1)SD(R2) b. Calculating the monthly returns of the portfolio and computing its volatility directly. c. How do your results compare