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Suppose Johnson & Johnson and the Walgreen Company have the expected returns and volatilities shown below, with a correlation of 22.9 %

                                              E(R)        SD(R)

Johnson & Johnson              6.5%         16.4%

walgreen company               9.3%          19.4%

For a portfolio that is equally invested in Johnson & Johnson's and? Walgreen's stock, calculate:

a. The expected return of the portfolio?

b. The volatility (standard deviation)?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92865318

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