Incorrect Question 1 0/6 pts As we lower the correlation, the expected return of the portfolio will and the volatility of the portfolio will not change; increase increase: decrease decrease: increase not change: decrease Incorrect Question 2 077 pts Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Return 14% 44% 23% Standard Correlation with Correlation with Correlation with Deviation Duke Energy Microsoft Wal-Mart 6% 1.0 -1.0 0.0 24% -1.0 1.0 0.7 14% 0.0 0.7 1.0 The expected return of a portfolio with $10,000 invested in Microsoft and $15,000 in Wal-Mart is closest to: 33.50% 27.00% 52.33% 31.40%