Question: Using the same data as for Problem 23, calculate the expected return and the volatility (standard deviation) of a portfolio consisting of Johnson & Johnsons

Using the same data as for Problem 23, calculate the expected return and the volatility (standard deviation) of a portfolio consisting of Johnson & Johnson’s and Walgreens’ stocks using a wide range of portfolio weights. Plot the expected return as a function of the portfolio volatility.

Using your graph, identify the range of Johnson & Johnson’s portfolio weights that yield efficient combinations of the two stocks, rounded to the nearest percentage point.

suppose Johnson & Johnson and Walgreens Boots Alliance have expected returns and volatilities shown below, with a correlation of 22%.
Expected Return Standard Deviation Johnson & Johnson 7% 16%
Walgreens Boots Alliance 10% 20%.

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