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Calculate expected return and volatility of a portfolio

Question: Suppose Johnson & Johnson and the Walgreen Co. have expected returns and volatilities shown below, 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 and Walgreen's stock.

                             E[R]    SD[R]
Johnson & Johnson    7%    16%
Walgreen Co.          10%    20%

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Finance Basics: Calculate expected return and volatility of a portfolio

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