# Question: Calculate a the expected return and b the volatility standard

Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson’s and Walgreen’sstock.

## Answer to relevant Questions

For the portfolio in Problem 23, if the correlation between Johnson & Johnson’s and Walgreen’s stock were to increase,a. Would the expected return of the portfolio rise or fall?b. Would the volatility of the portfolio ...Suppose you have $100,000 in cash, and you decide to borrow another $15,000 at a 4% interest rate to invest in the stock market. You invest the entire $115,000 in a portfolio J with a 15% expected return and a 25% ...Using the data in Problem 4, suppose you are holding a market portfolio, and have invested $12,000 in Stock C.a. How much have you invested in Stock A?b. How many shares of Stock B do you hold?c. If the price of Stock C ...IDX Tech is looking to expand its investment in advanced security systems. The project will be financed with equity. You are trying to assess the value of the investment, and must estimate its cost of capital. You find the ...Your brother Joe is a surgeon who suffers badly from the overconfidence bias. He loves to trade stocks and believes his predictions with 100% confidence. In fact, he is uninformed like most investors. Rumors are that Vital ...Post your question