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Solve the expected return and the volatility

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Reference no: EM133001085

Problem 1: Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 22%. Solve (a) the expected return and (b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson's and Walgreens' stock.

Data Table
                                              Expected Return                  Standard Deviation
Johnson n Johnson                  7.0%                                16.0%
Walgrens Boots Aliance           10.0%                                  20%

 

Reference no: EM133001085

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