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The following table contains monthly retums for Cola Corporation and Gas Corporation for 2012: E (The returns are shown in decimal form. Le. 0035 is

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The following table contains monthly retums for Cola Corporation and Gas Corporation for 2012: E (The returns are shown in decimal form. Le. 0035 is 15%) Using this table and the fact that Cola Corporation and Gas Corporation have a coneletion of - 00969, calculate the volatility (standard deviation) of a portfolio that is 50% invested in Cola Corporation shares and 50% invested in Gas Corporation shares' Calculate the volatility by I. using the following formula. Var(Rp) = w: SD (R1) 2 + w: SD(R2) + 2W1W200N(R1.R2)SD(R1)SD(R2) , and bi calculating the monthly retums of the portfolio and computing its volatility directly. 1:. How do your rasuits oompare? a. Using the following formula. Var(Rp) = w: SD(R1) 2 + w: SD (R2) + 2W1WZCW(R'.R2) SD (R1 ) SD(R2) , the volatility (standard deviation) of the portfolio is Enter your answer in the answer box and then click Check Answer. "a": remaining Clear All "' (Round to two decimal plaoes.) 0 Data Table Cola Corp. April May June July August September October November December - 0.0210 0.0000 - 0.0200 0.0090 - 0.0310 - 0.0640 - 0.1 190 - 0.0160 0.0550 - 0,01 10 - 0.0380 - 0.0220 Print Done Check

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