K Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here,...

Transcribed Image Text:

K Suppose 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 tha is equally invested in Johnson & Johnson's and Walgreens' stock. a. Calculate the expected return. The expected return is %. (Round to two decimal place.) b. Calculate the volatility (standard deviation). The volatility is %. (Round to two decimal place.) Data table - X h (Click on the following icon in order to copy its contents into a spreadsheet.) Standard Deviation Johnson & Johnson Walgreens Boots Alliance Expected Return 7.1% 10.3% Print Done 17.2% 21.4% K Suppose 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 tha is equally invested in Johnson & Johnson's and Walgreens' stock. a. Calculate the expected return. The expected return is %. (Round to two decimal place.) b. Calculate the volatility (standard deviation). The volatility is %. (Round to two decimal place.) Data table - X h (Click on the following icon in order to copy its contents into a spreadsheet.) Standard Deviation Johnson & Johnson Walgreens Boots Alliance Expected Return 7.1% 10.3% Print Done 17.2% 21.4%