Question: Please show work Consider the following expected returns, volatilities, and correlations: Stock Expected Standard Correlation with Correlation with Correlation with Return Deviation Duke Energy Microsoft
Please show work
| Consider the following expected returns, volatilities, and correlations: | |||||
| Stock | Expected | Standard | Correlation with | Correlation with | Correlation with |
| Return | Deviation | Duke Energy | Microsoft | Wal-Mart | |
| Duke Energy | 13% | 6% | 1 | -1 | 0 |
| Microsoft | 47% | 24% | -1 | 1 | 0.7 |
| Wal-Mart | 23% | 14% | 0 | 0.7 | 1 |
| The expected return of a portfolio that is equally invested in Duke Energy and Microsoft is ________. |
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