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)?