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

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, with a correlation of

24 %24%.

Calculate

(a)

the expected return and

(b)

the volatility (standard deviation) of a portfolio that consists of a long position of

$ 9 comma 000$9,000

in Johnson & Johnson and a short position of

$ 2 comma 000$2,000

in Walgreens.

a. Calculate the expected return.

The expected return is

nothing%.

(Round to one decimal place.)

	Expected Return		Standard Deviation
Johnson & Johnson	7.97.9%		16.716.7%
Walgreens Boots Alliance	9.19.1%		20.420.4%