Q10:

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

	Expected return	Standard Deviation
Johnson & Johnson	6.8	16.5
Walgreens Boots Alliance	10.6	20.9

, with a correlation of 21%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson's and Walgreens' stock.

a. Calculate the expected return.

The expected return is

enter your response here

%. (Round to one decimal place.)

b. Calculate the volatility (standard deviation).

The volatility is

enter your response here

%. (Round to one decimal place.)