QUESTIONS Consider the following expected returns, volatilities, and correlations: Expected Standard Correlation with Correlation with Correlation with Microsoft Wal-Mart Stock Return Deviation Duke Energy 0.0 13% Duke Energy -1.0 6% 1.0 Microsoft 47% 24% -1.0 1.0 0.7 Wal-Mart 23% 14% 0.0 0.7 1.0 The expected return of a portfolio that is equally invested in Duke Energy, Microsoft, and Wal-Mart is closest to O 14% 0 35% 0 28% 0 30%