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.
Johnson & Johnson 7% 16%
Walgreen Co. 10% 20%
Calculates Expected return and Standard Deviation of a Portfolio that is equally invested in two stocks.