For the portfolio in Problem 23, if the correlation between Johnson & Johnsons and Walgreenss stock were
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For the portfolio in Problem 23, if the correlation between Johnson & Johnson’s and Walgreens’s stock were to increase,
a. Would the expected return of the portfolio rise or fall?
b. Would the volatility of the portfolio rise or fall?
suppose Johnson & Johnson and Walgreens Boots Alliance have expected returns and volatilities shown below, with a correlation of 22%.Appendix
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