Question: Question 4 7 pts Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Return 14% 44% 23% Standard Correlation with

Question 4 7 pts Consider the following expected returns, volatilities, and

Question 4 7 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 0.0 1.0 The volatility of a portfolio (standard deviation) that is equally invested in Microsoft and Wal-Mart is closest to: 16.60% 3.11% 2.76% 17.62%

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