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Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22.7 %22.7%. Upper E left
Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of
22.7 %22.7%.
Upper E left bracket Upper R right bracketE [R] | SD left bracket Upper R right bracketSD [R] | |
Johnson & Johnson | 6.2 %6.2% | 16.2 %16.2% |
Walgreen Company | 10.5 %10.5% | 19.1 %19.1% |
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).
Please do the a and b question!!!!!
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