Question: please list out step by step solution and include where the numbers are coming from in equation being used Consider the following expected returns, volatilities,

please list out step by step solution and include where the numbers are coming from in equation being used

Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Standard Return Deviation 14% 8% 44% 24% 23% 12% Correlation with Duke Energy 1.0 - 1.0 0.0 Correlation with Microsoft - 1.0 1.0 0.7 Correlation with Wal-Mart 0.0 0.7 1.0 The volatility of a portfolio that is equally invested in Wal-Mart and Duke Energy is closest to: 10 O A. 4.3% OB. 7.2% O c. 21.6% OD. 0.7%

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