Calculate expected return and volatility

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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.

E[R] SD[R]
Johnson & Johnson 7% 16%
Walgreen Co. 10% 20%

Reference no: EM1356539

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