Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, table below,with a correlation of 23%. Calculate(a) the expected return and (b)

the volatility (standard deviation) of a portfolio that consists of a long position of $9,500 in Johnson & Johnson and a short position of $2,000 in Walgreens.

a. Calculate the expected return.

The expected return is............%.(Round to one decimal place.)

b. Calculate the volatility (standard deviation).

The volatility is..............%. (Round to one decimal place.)

	Expected Return		Standard Deviation
Johnson & Johnson	6.8%		17.4%
Walgreens Boots Alliance	10.6%		20.2%