Question 24, P 12-12 HW Score: 35.48%, 11 of 31 Homework: Homework 4 (similar to) points Save P 12-12 (similar to) O Points: 0 of 1 The following table contains monthly returns for Cola Co and Gas Co. for 2013 (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 - 0.0969, calculate the volatility (standard deviation) of a portfolio that is 50% invested in Cola Co, stock and 50% invested in Gas Co stock. Calculate the volatility by a. Using the formula: Var(Rp) W50 (R1) 2 + w s(R2) +2w;w,Corr (R,R3) SD (R4) SO (R2) b. Calculating the monthly returns of the portfolio and computing its volatility directly c. How do your results compare? GER a. Using the formula: Var (R) w S0(R1) 2*wSD (R2) +2W, W2 Cort (R.R3) SD (R4) SP (R) The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.) Question 24, P 12-12 HW Score: 35.48%, 11 of 31 Homework: Homework 4 (similar to) points Save P 12-12 (similar to) O Points: 0 of 1 The following table contains monthly returns for Cola Co and Gas Co. for 2013 (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 - 0.0969, calculate the volatility (standard deviation) of a portfolio that is 50% invested in Cola Co, stock and 50% invested in Gas Co stock. Calculate the volatility by a. Using the formula: Var(Rp) W50 (R1) 2 + w s(R2) +2w;w,Corr (R,R3) SD (R4) SO (R2) b. Calculating the monthly returns of the portfolio and computing its volatility directly c. How do your results compare? GER a. Using the formula: Var (R) w S0(R1) 2*wSD (R2) +2W, W2 Cort (R.R3) SD (R4) SP (R) The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.)