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The folowing table contains monthly returns for Cola Co. and GasCo for 2013 (the returns are shown in decimal form, i.e, 0.035 is 3.5% )

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The folowing table contains monthly returns for Cola Co. and GasCo for 2013 (the returns are shown in decimal form, i.e, 0.035 is 3.5% ) Using this Cola Co stock and 504 imvested in Gas Co stock Calculate the volatily by a. Using the formula Ver(Re)=w12SD(R1)2+w22SD(R2)2+2w1w2Cor(R1,R2)SO(R1)SD(R2) b. Calculating the monthly returns of the portiolio and computing its volatuty directiy c. How do your results compare? a. Using the formula: Var(Rp)=w12SO(R1)2+w22SD(R2)2+2w1w2Corr(R1,R2)SO(R1)SD(R2) The volatily (standiard deviation) of the portfolio is . Yi (Round to two decimal places) b. Calcutatina the monthlv returns of the portiolio and compoting its volatitity directly. The volatilty (standard deviaton) of the porttolio is 4. (Round to two decimal places.) c. How do your results compare? (Select the best choice belowe) A. The two portfolio volabilies, calculated using the Var(Rp) formuta in part (a) and using the monthly portfolio returns, are the same ot almost the same. 8. The portfotio votatitity catcutated using the Var (Rp) formula in part (a) is much larger than the portiolio volalitity catculated used the monthly portiolio relums C. The cannot be determind from the information given D. The portfolio volatility caiculated using the Var(R, formula in part (a) is much smallor than the portfolio volatily calculated used the monthly portiolio retums (Click on the following icon in order to copy its contents into a spreadsheet.)

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