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

22.4%.

	E [R]	SD [R]
Johnson & Johnson	6.4%	15.1%
Walgreen Company	9.4%	20.3%

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).

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Part 1

a. The expected return.

The expected return of the portfolio is

enter your response here%

Part 2

b. The volatility (standard deviation).

The volatility of the portfolio is

enter your response here%.