Question: A, B, & C, please! The following table contains monthly returns for Cola Co. and Gas Co. for 2010 B (the returns are shown in

A, B, & C, please!

A, B, & C, please! The following table contains monthly returns for

The following table contains monthly returns for Cola Co. and Gas Co. for 2010 B (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: Var (Ro) = w;SD (R4) 2 + wSD (R2) +2W, W2 Corr (R4.R3) SD (R4) SD (R2) b. Calculating the monthly returns of the portfolio and computing its volatility directly. c. How do your results compare? a. Using the formula: X - Var (Ro) = wSD (R1)2 + w SD (R2) +2w, w2Corr (R1,R2) SD (R4) SD(R2) The volatility (standard deviation) of the portfolio is %. (Round to two decimal places.) Data Table Month Cola Co. Gas Co. - 0.1084 -0.0600 January February March 0.0236 0.0128 0.0660 -0.0186 April 0.0201 -0.0190 May 0.0740 0.1836 -0.0122 June -0.0026 0.0225 0.0836 -0.0689 -0.0246 July August September October -0.0604 -0.0200 0.1361 0.0000 November 0.0351 0.0468 December 0.0054 0.0222 Print Done

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