Question: Consider the following expected returns, volatilities, and correlations: Expected Return Standard Correlation with Correlation with Wal- Stock Deviation Microsoft Mart Microsoft 44% 24% 1.0 0.7

Consider the following expected returns, volatilities, and correlations: Expected Return Standard Correlation with Correlation with Wal- Stock Deviation Microsoft Mart Microsoft 44% 24% 1.0 0.7 23% 14% 0.7 1.0 Wal-Mart The volatility of a portfolio that consists of a long position of $10000 in Wal-Mart and a short position of $2000 in Microsoft is closest to: A 14% B.9% C. 11% OD. 12%

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