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The following table contains monthly returns for Cola Co. and Gas Co. for 2013 (the retums are showa in decimal form, Le. 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 are showa in decimal form, Le. 0.035 is 3.5%. Using this table and the tact that Cola Co. and Gis Co have a correlabion of 0.6084 , caleulate the volatily (standard deviation) of a portolo that is S5W invested in Cola Co. stock and 45% Invested in Gas Co. stock. Calculate the volatity by: a. Using the formula Var(R2)=w12SD(R1)2+w22SD(R2)2+2w1w2Cor(R1,R2)SD(R1)sD(R2) b. Calculating the monthly relums of the portolo and computing its volatify Grectly c. How do your results compare? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) The following table contains monthly returns for Cola Co. and Gas Co. for 2013 (the retums are showa in decimal form, Le. 0.035 is 3.5%. Using this table and the tact that Cola Co. and Gis Co have a correlabion of 0.6084 , caleulate the volatily (standard deviation) of a portolo that is S5W invested in Cola Co. stock and 45% Invested in Gas Co. stock. Calculate the volatity by: a. Using the formula Var(R2)=w12SD(R1)2+w22SD(R2)2+2w1w2Cor(R1,R2)SD(R1)sD(R2) b. Calculating the monthly relums of the portolo and computing its volatify Grectly c. How do your results compare? Data table (Click on the following icon in order to copy its contents into a spreadsheet.)

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