Question: Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, , with a correlation of 24%. Assume the portfolio is

$Suppose Johnson \& Johnson and Walgreen Boots Alliance have expected returns$

Suppose Johnson \& Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, , with a correlation of 24%. Assume the portfolio is equally invested in these two stocks. If the correlation between Johnson \& Johnson's and Walgreens' stock were to increase, a. Would the expected return of the portfolio rise or fall? b. Would the volatility of the portfolio rise or fall? a. Would the expected return of the portfolio rise or fall? (Select the best choice below.) A. Fall. B. Rise. Data table C. Remain the same. D. Cannot tell from the information provided. (Click on the following icon D in order to copy its contents into a spreadsheet.) b. Would the volatility of the portfolio rise or fall? (Select the best choice below.) A. Remain the same. B. Rise. C. Cannot tell from the information provided. D. Fall

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