Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below,...
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Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 21.3%. Johnson & Johnson Walgreen Company E[R] 7.3% 10.3% SD [R] 16.6% 19.1% 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 %. (Round to one decimal place.) Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 21.3%. Johnson & Johnson Walgreen Company E[R] 7.3% 10.3% SD [R] 16.6% 19.1% 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 %. (Round to one decimal place.)
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