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

with a correlation of 21%.Calculate (a) the expected return and(b) the volatility (standard deviation) of a portfolio that consists of a long position of 10,500

in Johnson & Johnson and a short position of $1000 in Walgreens.

(Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Expected Return Johnson &Johnson Walgreens Boots Alliance 7.6% 10.5% Standard Deviation 17.3% 21.9%