Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, check the table below, with a correlation of 15%.

Calculate the expected return and the volatility (standard deviation) of a portfolio consisting of Johnson & Johnson's and Walgreens' stocks using a wide range of portfolio weights. Plot the expected portfolio return as a function of the portfolio volatility. Using your graph, identify the range of Johnson & Johnson's portfolio weights that yield efficient combinations of the two stocks.

Expected Return		Standard Deviation
Johnson & Johnson	13%		16%
Walgreens Boots Alliance	12%		11%

Find the expected return and volatility of the portfolio consisting of 20% of Johnson & Johnson's stock and

80% of Walgreens' stock.

The expected return of the portfolio is .%. (Round to one decimal place.)

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

Find the expected return and volatility of the portfolio consisting of 30% of Johnson & Johnson's stock and 70% of Walgreens' stock.

The expected return of the portfolio is .%. (Round to one decimal place.)

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

Find the expected return and volatility of the portfolio consisting of 40% of Johnson & Johnson's stock and 60% of Walgreens' stock.

The expected return of the portfolio is ..%. (Round to one decimal place.)

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

Plot the expected portfolio return as a function of the portfolio volatility.