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

, with a correlation of 24%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that consists of a long position of $8,000 in Johnson & Johnson and a short position of $1,000 in Walgreens.

a. Calculate the expected return.

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

Data table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Johnson & Johnson Walgreens Boots Alliance Expected Return 7.3% 10.3% Standard Deviation 16.5% 18.6%