The following table looks similar, but is the monthly returns for both companies in 1992.

Calculate the volatility (standard deviation) of a portfolio that is 55% invested in Coca-Cola and 45% invested in Exxon Mobil stock.

For this problem, please use two different Variance formulas and compare how results differ.

Formula #1: Var(Rp) = x21Var(R1) + x22Var(R2) + 2x1x2Cov(R1R2)

Formula #2: Var(Rp) =x21STD(R1) + x22STD(R2) +2x1x2Corr(R1R2)STD(R1)STD(R2)

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Month January February Mar April May KO 0.024 0.058 0.016 0.016 0.028 0.046 0.008 0.008 0.008 0.004 0.059 0.014 XOM 0.062 0.046 0.046 0.059 0.038 0.06 0.004 0.02 0.036 0.006 0.018 0.026 ne July August September October November December 2