Question: Suppose Johnson& Johnson and Walgreen Boots Alliance have expected returns and volatilities shownhere, LOADING... , Expected Return Standard Deviation Johnson& Johnson 7.5% %14.6 Walgreens Boots

Suppose Johnson& Johnson and Walgreen Boots Alliance have expected returns and volatilities shownhere, LOADING...,

Expected Return Standard Deviation

Johnson& Johnson 7.5% %14.6

Walgreens Boots Alliance 9.4% 20.4%

with a correlation of 22%

Calculate (a) the expected return and (b) the volatility(standard deviation) of a portfolio that consists of a long position of $12,000 in Johnson& Johnson and a short position of

$2,500 in Walgreens.

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