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

 Use the table for the question(s) below. Consider the following expected

Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Return Expected Standard Correlation with Correlation with Correlation with Stock Deviation Duke Energy Microsoft 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 1.0 Which of the following combinations of two stocks would give you the biggest reduction in risk? O A Wal-Mart and Microsoft B. Microsoft and Duke Energy OC. Duke Energy and Wal-Mart OD. No combination will reduce risk. 0.7

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