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The following table contains monthly returns for Cola Co . and Gas Co . for 2 0 1 3 ( the returns are shown in
The following table contains monthly returns for Cola Co and Gas Co for the returns are shown in decimal form, ie is Using this table and the fact that Cola Co and Gas Co have a correlation of calculate the volatility standard deviation of a portfolio that is invested in Cola Co stock and invested in Gas Co stock. Calculate the volatility by: a Using the formula: VarCorr b Calculating the monthly returns of the portfolio and computing its volatility directly. c How do your results compares a Using the formula: VarCorr The volatility standard deviation of the portfolio is Round to two decimal places.
The following table contains monthly returns for Cola Co and Gas Co for the returns are shown in decimal form, ie is Using this table and the fact that Cola Co and Gas Co have a correlation of calculate the volatility standard deviation of a portfolio that is invested in Cola Co stock and invested in Gas Co stock. Calculate the volatility by:
a Using the formula:
VarCorr
b Calculating the monthly returns of the portfolio and computing its volatility directly.
c How do your results compares
a Using the formula:
VarCorr
The volatility standard deviation of the portfolio is Round to two decimal places.
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