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

The volatility of a portfolio that is equally invested in Duke Energy and Microsoft is closest to:

		a. 11%
		b. 8%
		c. 6%
		d. 9%