K Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here,...
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K Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, E, with a correlation of 20%. Assume the portfolio is equally invested in these two stocks. If the correlation between Johnson & Johnson's and Walgreens' stock were to increase, Would the expected return of the portfolio rise or fall? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Expected Return 6.4% 9.2% Johnson & Johnson Walgreens Boots Alliance Standard Deviation 16.9% 20.1% a. Would the expected return of the portfolio rise or fall? b. Would the volatility of the portfolio rise or fall? K Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, E, with a correlation of 20%. Assume the portfolio is equally invested in these two stocks. If the correlation between Johnson & Johnson's and Walgreens' stock were to increase, Would the expected return of the portfolio rise or fall? Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Expected Return 6.4% 9.2% Johnson & Johnson Walgreens Boots Alliance Standard Deviation 16.9% 20.1% a. Would the expected return of the portfolio rise or fall? b. Would the volatility of the portfolio rise or fall?
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