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’s 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%.Appendix

Johnson & Johnson Walgreens Boots Alliance Expected Return Standard Deviation 7% 10% 16% 20%