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

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

Data Table

Expected Return Standard Deviation

Johnson n Johnson 7.0% 16.0%

Walgrens Boots Aliance 10.0% 20%