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The following table contains monthly returns for Cola Co. and Gas Co. for 2013 (the retums ace shown in decimal form, i.e, 0.035 is 3.5%

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The following table contains monthly returns for Cola Co. and Gas Co. for 2013 (the retums ace 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 comelation of 0.0969, calculate the volatily (standard deviation) of a portolio that is 50% ievested in Cola Co. atock and 50% invested in Gas Co, stock, Calculate the volatility by: a. Using the formula: Var(Rp)=w12SO(R1)2+w22SO(R2)2+2w1w2Corr(R1,R2)SD(R1)SD(R2) b. Calculating the monthly returns of the portolio and computing its velatity drecty. e. How do your results compare? a. Using the formula: Var(Rp)=w12SD(R1)2+w2250(R2)2+2w1w2Corr(R1,R2)SD(R1)SD(R2) The volatily (standart deviation) of the portole is is. (Round to two decimal places.) b. Caloulating the monthly rotums of the portfolio and computing its velastity drectly. The volstitly (otancars deviation) of the portiolio is (x. (Round to twe dedmal places) c. How do your resuts compare? (Solect the best choice below) B. The the portolo volatitet, calculated using the Var(Rp) formula in part (a) and using the monthy porthoco retume, are the same of almost the same. C. This cannot be determined trom the information given. Data table (Click on the following icon in order to copy its contents into a spreadsheet.)

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