Question: Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 21%. Calculate (a) the expected return

Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns andSuppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 21%. Calculate

(a) the expected return and

(b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson's and Walgreens' stock.

Johnson & Johnson Walgreens Boots Alliance Expected Return 7.1% 9.1% Standard Deviation 15.8% 20.8%

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