Question: Show that when w = h/g and h and g are each dependent on n Wiener processes, the ith component of the volatility of w

Show that when w = h/g and h and g are each dependent on n Wiener processes, the ith component of the volatility of w is the ith component of the volatility of h minus the ith component of the volatility of g. Use this to prove the result that if Ïƒ_Uis the volatility of U and Ïƒ_Vis the volatility of V then the volatility of U/V is

Ισ + σ,-2ρσυσ

+ ,-2

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