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Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 21.2%. E [ R ]

Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 21.2%.

E [R]

SD [R]

Johnson & Johnson

7.2%

15.4%

Walgreen Company

10.3%

20.1%

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

a. The expected return.

The expected return of the portfolio is enter your response here%. (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.)

.

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