The following table contains monthly returns for Cola Co. and Gas Co. for 2010 (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: X Var (Ro) = w? SD (R1) 2 + w SD (R2) +2W, W2 Corr (R1,R2) SD (R1) SD (R2) Data Table b. Calculating the monthly returns of the portfolio and computing its volatility directly. c. How do your results compare? Month Cola Co. Gas Co. a. Using the formula: January -0.1084 -0.0600 Var(Ro) = w} SD(R1) 2 + w SD (R2) + 2W, W2 Corr (R1,R2) SD (R1) SD (R2) February 0.0236 0.0128 March 0.0660 -0.0186 The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.) April 0.0201 -0.0190 May 0.1836 0.0740 O June -0.0122 -0.0026 0.0836 0.0225 -0.0689 -0.0246 -0.0604 -0.0200 July August September October November December 0.1361 0.0000 0.0351 0.0468 0.0054 0.0222 Print Done