Use the table for the question(s) below.

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 15% 6% 1.0 -1.0 0.0

Microsoft 34% 24% -1.0 1.0 0.75

Wal-Mart 23% 13% 0.0 0.75 1.0

Question. Consider a portfolio consisting of only Duke Energy and Microsoft. Suppose you would place in Duke Energy stock to achieve a risk-free investment. What would be the percentage of your investment (portfolio weight)?

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