Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here,

with a correlation of 22%. Calculate (a) the expected return (8.3%) and (b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson's and Walgreens' stock.

(Click on the following icon in order to copy its contents into a spreadsheet.) Expected Return 6.4% Johnson & Johnson Walgreens Boots Alliance 10.2% Standard Deviation 15.2% 21.2%