Expected Return and the Volatility of a Portfolio Assignment | Homework For You
June 8th, 2020
Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, with a correlation of 21%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that consists of a long position of $11,500 in Johnson & Johnson and a short position of $2,500 in Walgreens.

Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Johnson & Johnson Walgreens Boots Alliance Expected Return 6.3% 9.3% Standard Deviation 14.4% 21.7%. Get Finance homework help today