Need help with B.

Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of

22.8 %

	Upper E left bracket Upper R right bracketE [R]	SD left bracket Upper R right bracketSD [R]
Johnson & Johnson	6.2 %	15.7 %
Walgreen Company	9.3 %	20.8 %

For a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock, calculate:

a. The expected return.

b. The volatility (standard deviation).

a. The expected return.

The expected return of the portfolio is

7.8%

(Round to one decimal place.)

b. The volatility (standard deviation).

The volatility of the portfolio is ?% (Round to one decimal place.)