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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 &

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 7% 16% Walgreen Company 10% 20% For a portfolio that is equally invested in Johnson & Johnsons and Walgreens stock, calculate a. The expected return. b. The volatility (standard deviation).

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