Question: Question 2 7 pts Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Standard Correlation with Correlation with Correlation with

Question 2 7 pts Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Standard Correlation with Correlation with Correlation with Return Deviation Duke Energy Microsoft Wal-Mart 14% 1.0 -1.0 0.0 44% 24% -1.0 1.0 0.7 14% 0.0 0.7 1.0 23% The expected return of a portfolio with $10,000 invested in Microsoft and $15,000 in Wal-Mart is closest to: 31.40% 52.33% 33.50% 27.00%
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