Calculate the expected return and the volatility standard


Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 21.3 %. Upper E left bracket Upper R right bracket E [R] SD left bracket Upper R right bracketSD [R] Johnson & Johnson 7.1%,16.3% Walgreen Company 9.7% 20.3% 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 nothing %. (Round to one decimal place.) b. The volatility (standard deviation). The volatility of the portfolio is nothing %. (Round to one decimal place.)

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Financial Management: Calculate the expected return and the volatility standard
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