q10

Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here , with a correlation o 23%. Calculate a the expected return and b the volatility standard deviation of a portfolio that consists of a long position of $10,500 in Johnson & Johnson and a short position of $2,000 in Walgreens. a. Calculate the expected return. The expected return is.%. (Round to one decimal pla b. Calculate the volatlity (standard deviation). The volatility is D96. (Round to one decimal place.) Data Table (Click on the icon located on the top-right comer of the data table below in order to copy its contents nto a spreadsheet.) Expected Return Standard Deviation 14 .2% 19.4% Johnson & Johnson 1510 9.8% Walgreens Boots Alliance