Question: Expected Return Standard Deviation Johnson & Johnson 7.8% 16.4% Walgreens Boots Alliance 10.4% 18.5% Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns

Expected Return Standard Deviation Johnson & Johnson 7.8% 16.4% Walgreens Boots Alliance 10.4% 18.5%

Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, LOADING... , with a correlation of 22%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that consists of a long position of $9,500 in Johnson & Johnson and a short position of $2,500 in Walgreens.

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