Expected returns and volatilities

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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.

Reference no: EM131781676

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