Question
Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22%. E [ R ]
Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22%.
| E[R] | SD[R] | |
|---|---|---|
| Johnson & Johnson | 5% | 14% |
| Walgreen Company | 10% | 20% |
Consider a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock
(a)Calculate the expected return as a percent.
%
(b)Calculate the volatility (standard deviation) of returns as a percent. (Round your answer to two decimal places.)
%
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Debt Resisters Operations Manual
Authors: Strike Debt Strike Debt
1st Edition
1604866799, 978-1604866797
