Johnson & Johnson Walgreen Company E [R] 7.2% 10.3% SD [R] 16.4% 19.5% a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock, calculate: The expected return. The volatility (standard deviation). he expected return. expected return of the portfolio is%. (Round to one decimal place.) The volatility (standard deviation). volatility of the portfolio is%. (Round to one decimal place.)

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22.8%.
E [R]
7.2%
SD [R]
16.4%
10.3%
19.5%
Johnson & Johnson
Walgreen Company
For a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock, calculate:
a. The expected return.
b. The volatility (standard deviation).
a. The expected return.
The expected return of the portfolio is%. (Round to one decimal place.)
b. The volatility (standard deviation).
The volatility of the portfolio is%. (Round to one decimal place.)
Transcribed Image Text:Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22.8%. E [R] 7.2% SD [R] 16.4% 10.3% 19.5% Johnson & Johnson Walgreen Company For a portfolio that is equally invested in Johnson & Johnson's and Walgreen's stock, calculate: a. The expected return. b. The volatility (standard deviation). a. The expected return. The expected return of the portfolio is%. (Round to one decimal place.) b. The volatility (standard deviation). The volatility of the portfolio is%. (Round to one decimal place.)
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