Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here,

LOADING...

, with a correlation of

22 %22%.

Calculate

(a)

the expected return and

(b)

the volatility (standard deviation) of a portfolio that consists of a long position of

$ 10 comma 000$10,000

in Johnson & Johnson and a short position of

$ 2 comma 000$2,000

in Walgreens.

a. Calculate the expected return.

The expected return is

nothing%.

(Round to one decimal place.)

b. Calculate the volatility (standard deviation).

The volatility is

nothing%.

(Round to one decimal place.)