Question: Expected Return (%) Standard Deviation (%) Johnson & Johnson 7 16 Walgreens Boots Alliance 10 20 Suppose Johnson & Johnson and Walgreen Boots Alliance have

| Expected Return (%) | Standard Deviation (%) | |
| Johnson & Johnson | 7 | 16 |
| Walgreens Boots Alliance | 10 | 20 |
Suppose Johnson \& Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, , with a correlation of 22%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson \& Johnson's and Walgreens' stock. a. Calculate the expected retum. The expected return is \%. (Round to two decimal place.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
