K Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
K Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 21%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio tha is equally invested in Johnson & Johnson's and Walgreens' stock. a. Calculate the expected return. The expected return is %. (Round to two decimal place.) b. Calculate the volatility (standard deviation). The volatility is %. (Round to two decimal place.) Data table - X h (Click on the following icon in order to copy its contents into a spreadsheet.) Standard Deviation Johnson & Johnson Walgreens Boots Alliance Expected Return 7.1% 10.3% Print Done 17.2% 21.4% K Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 21%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio tha is equally invested in Johnson & Johnson's and Walgreens' stock. a. Calculate the expected return. The expected return is %. (Round to two decimal place.) b. Calculate the volatility (standard deviation). The volatility is %. (Round to two decimal place.) Data table - X h (Click on the following icon in order to copy its contents into a spreadsheet.) Standard Deviation Johnson & Johnson Walgreens Boots Alliance Expected Return 7.1% 10.3% Print Done 17.2% 21.4%
Expert Answer:
Posted Date:
Students also viewed these finance questions
-
Given the graph of a degree 5 polynomial below, complete the table of values for either the x-value of a zero, or the multiplicity of the zero. Write roots in order from least to greatest. Root with...
-
Look up information on the strategic move of LOreal buying up The Body Shop. Use the BCG matrix to categorize both brands and evaluate the strategic value of the move for both brands.
-
To what extent should a restaurant manager involve subordinate staff in the analysis of variance proce
-
Use the abbreviated comparative financial statements for Pacific Digital Corporation in the Working Papers. The comparative balance sheet for Pacific Digital Corporation lists an intangible asset,...
-
A mobile is formed by supporting four metal butterflies of equal mass m from a string of length L. The points of support are evenly spaced a distance apart as shown in Figure P5.73. The string forms...
-
I want accurate answer with proper explanation please I'll upvote show all your work no handwriting Suppose that x is an exponential random variable with parameter uniformly distributed on (1,2)....
-
If an object is projected upward from ground level with an initial velocity of 112 feet per second, then its height in feet after t seconds is given by s(t)=-16t^(2)+112t. Find the number of seconds...
-
317 Prepare the schedule of cost of goods manufactured for Barton Company using the following information Direct materials Direct labor Factory overhead costs Work in process, beginning Work in...
-
My name is Amanda Missigman. I'm originally from New Jersey, but currently living in Orlando, Florida and enjoying every minute in the sunshine state. At SNHU, I am studying business with a...
-
UV Company offered a cash rebate of P10 on each P40 package of batteries sold during the current year. Historically, 10% of customers main in the rebate form. During the year, 6,000,000 packages of...
-
John employed in the human resources department for Grace Foods (GraceKennedy Limited ). The company has just reached an agreement to open a new sales office in Japan in order to better serve...
-
1. Suppose that under competitive conditions the market for talent can be represented by the following functions: Supply of Labor: P = 50 + 3Q Demand for Labor: P = 200 - 3Q Find and graph the...
-
Which of the following insurance agents has engaged in twisting? a)Stu who convinces his clients to cancel their policy with Vaughan City Life and instead purchase a similar policy from Region...
-
Explain the regulation of the secretions of the small intestine.
-
An office wants to install an information system. The main tasks are below, with time estimates in days and task dependencies indicated. Find the amount of time required to get the system up and...
-
An advertising agency has contracted to prepare a commercial. The main tasks, time estimates, and task dependencies are shown in the table below. How many days will it take to produce this...
-
For the project in Exercise 4, form a project graph with tasks on vertices.
Study smarter with the SolutionInn App