Suppose Johnson & Johnson and the Walgreen Company have expected returns and volatilities shown below, with a correlation of 22%. Calculate the expected return of a portfolio that is equally invested...

Suppose Johnson & Johnson and the Walgreen Company have expected returns and volatilities shown below, with a correlation of 22%.

1. Calculate the expected return of a portfolio that is equally invested in J&J and Walgreen’s stock.


2. Calculate the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson’s and Walgreen’s stock.