Use the table for the question(s) below Consider the following expected returns, volatilities, and correlations Stock Expected Return Standard Deviation Correlation with Duke Energy Correlation with Microsoft Correlation with Wal Mart Duke Energy 14 6 1 0 1 0 0 0 Microsoft 44 24 1 0 1 0 0 7 Wal Mart 23 14 0 0 0 7 1 0 Consider a portfolio consisting of only Microsoft and Walmart stock Calculate the expected return on such a portfolio when the weight on Microsoft stock is 0 , 25 , 50 , 75 , and 100

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Question: Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock Expected Return Standard Deviation Correlation with Duke Energy Correlation

Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations:

Stock	Expected Return	Standard Deviation	Correlation with Duke Energy	Correlation with Microsoft	Correlation with Wal-Mart
Duke Energy	14%	6%	1.0	-1.0	0.0
Microsoft	44%	24%	-1.0	1.0	0.7
Wal-Mart	23%	14%	0.0	0.7	1.0

Consider a portfolio consisting of only Microsoft and Walmart stock. Calculate the expected return on such a portfolio when the weight on Microsoft stock is 0%, 25%, 50%, 75%, and 100%

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