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Please complete A and B, round A and B to two decimal places Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and
Please complete A and B, round A and B to two decimal places
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 that consists of long position of $9,500 in Johnson & Johnson and a short position of $2,500 in Walgreens. a. Calculate the expected return. The expected return is %. (Round to one decimal place.) i Data Table (Click on the following icon in order to copy its contents into a spreadsheet.) Johnson & Johnson Walgreens Boots Alliance Expected Return 6.5% 10.7% Standard Deviation 17.6% 19.3% Print DoneStep by Step Solution
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