Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of

21.4%.

	E [R]	SD [R]
Johnson & Johnson	7.4%	16.8%
Walgreen Company	9.4%	20.1%

For a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock, calculate:

a. The expected return.

b. The volatility (standard deviation).

a. The expected return.

The expected return of the portfolio is

8.4%.

(Round to one decimal place.)

b. The volatility (standard deviation).

The volatility of the portfolio is

enter your response here%.

(Round to one decimal place.)