P 12-12 (book/static) Question Help The following table contains monthly retums for Cola Co. and Gas Co. for 2010 (the returns 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 65% invested in Cola Co stock and 45% Invested in Gas Co, stock. Calculate the volatility by: a. Using the formula: A Data Table Var(P) = w;SD (R.)2 + w SP (R2) +2ww.cor (R..R2) SD (RA) SD (R2) b. Calculating the monthly retums of the portfolio and computing its volatility directly c. How do your results compare? Month Cola Co. Gas Co. a. Using the formula: January - 0.1084 -0.0600 Var(R.) = w SP (R4)2 + w SP (R2) + 2WW.CONY (R, R2) SD (R1) SD (R2) February 0.0236 0.0128 March 0.0660 -0.0186 The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.) April 0.0201 -0.0190 May 0.1836 0.0740 June -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 0.0466 December 0.0054 0.0222 Print Done Enter your answer in the answer box and then click Check Answer. P 12-12 (book/static) Question Help The following table contains monthly retums for Cola Co. and Gas Co. for 2010 (the returns 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 65% invested in Cola Co stock and 45% Invested in Gas Co, stock. Calculate the volatility by: a. Using the formula: A Data Table Var(P) = w;SD (R.)2 + w SP (R2) +2ww.cor (R..R2) SD (RA) SD (R2) b. Calculating the monthly retums of the portfolio and computing its volatility directly c. How do your results compare? Month Cola Co. Gas Co. a. Using the formula: January - 0.1084 -0.0600 Var(R.) = w SP (R4)2 + w SP (R2) + 2WW.CONY (R, R2) SD (R1) SD (R2) February 0.0236 0.0128 March 0.0660 -0.0186 The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.) April 0.0201 -0.0190 May 0.1836 0.0740 June -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 0.0466 December 0.0054 0.0222 Print Done Enter your answer in the answer box and then click Check