Suppose Johnson? & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown? here, LOADING...,
Expected Return Standard Deviation
Johnson? & Johnson 7.5% %14.6
Walgreens Boots Alliance 9.4% 20.4% with a correlation of 22%
Calculate ?(a?) the expected return and ?(b?) the volatility? (standard deviation) of a portfolio that consists of a long position of $12,000 in Johnson? & Johnson and a short position of $2,500 in Walgreens.