The following table contains monthly returns for Cola Co. and Gas Co. for 2010 B (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 55% invested in Cola Co. stock and 45% invested in Gas Co. stock. Calculate the volatility by: a. Using the formula: 2 Var(Re) = w;SD (R4)2 + wSD (R2) +2wqw2 Corr (R4.R2) SD (R1) SD (R2) + 1 b. Calculating the monthly returns of the portfolio and computing its volatility directly. c. How do your results compare? a. Using the formula: Var(Re) = w/ SD (R1) 2 + w SD (R2) +2w, W2 Corr (R1,R2) SD (R1) SD (R2) 2 The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.) Month Cola Co. Gas Co. January - 0.1084 -0.0600 February 0.0236 0.0128 March 0.0660 -0.0186 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 -0.0604 -0.0200 September October 0.1361 0.0000 November 0.0351 0.0468 December 0.0054 0.0222