Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 20 %.

	Expected Return	Standard Deviation
Johnson & Johnson	7.5%	17.3%
Walgreens Boots Alliance	10.3%	21.7%

Calculate

(a)

the expected return and

(b)

the volatility (standard deviation) of a portfolio that consists of a long position of $10,000

in Johnson & Johnson and a short position of 1,500 in Walgreens.

a. Calculate the expected return.

The expected return is ?

(Round to one decimal place.)

b. Calculate the volatility (standard deviation).

The volatility is ?

(Round to one decimal place.)