Question: Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22%. For a portfolio that

Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22%.

For a portfolio that is equally invested in Johnson & Johnson€™s and Walgreen€™s stock, calculate:
a. The expected return.
b. The volatility (standarddeviation).

ELR] 7% 10% SD R] 16% 20% Johnson & Johnson Walgreen Company

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