Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 4: suppose johnson & johnson and walg

Question 4: Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities...

50.1K

Verified Solution

Question

Finance

Question 4: Suppose Johnson & Johnson and Walgreen Boots Alliance have expected returns and volatilities shown below, with a correlation of 23%.

Calculate:

(a) the expected return and

(b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson & Johnson's and Walgreens' stock.

image

Suppose Johnson \& Johnson and Walgreen Boots Alliance have expected returns and volatilities shown here, , with a correlation of 23%. Calculate (a) the expected return and (b) the volatility (standard deviation) of a portfolio that is equally invested in Johnson \& Johnson's and Walgreens' stock. a. Calculate the expected return The expected return is %. (Round to two decimal place.) b. Calculate the volatility (standard deviation). The volatility is %. (Round to two decimal place.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

The Duncan Company has just completed a number of budgets forthe coming year. The...

Accounting
Q

Classify the lab tests listed by the phase of hemostasis it assesses (primary hemostasis, secondary hemostasis,...

Medical Sciences
Q

Assume that a certain billionaire innovator misplaced his supercar and finds it launched into a high-earth...

Physics
Q

A sole proprietorship is a one person business without any O assets while a partnership...

Biology
Q

Brother Isiah stopped at rest area A along the side of the highway. His map,...

Basic Math
Q

31 sin 8 48 cos 20 What is the second step to finde A 8...

Calculus
Q

When a business factors its accounts receivables, this means that the business ________. A) uses...

Accounting
Q

Activity: based Quelity Conting products

Accounting
Q

Sylvia borrows $10,500 on August 25 and promises to make three equal payments, one on...

Accounting
Q

On January 2, Year 4, Brady Ltd., a private company, purchased 80% of the outstanding...

Accounting
Q

Cullumber Ltd. is a public company that manufactures and sells heavy equipment such as cranes...

Accounting
Q

OBJ.5 SHOW ME HOW EE1-522 PE 1-5A Statement of owner's equity Using the income statement...

Accounting