6.
Consider the following expected returns, volatilities, and correlations:
	Stock	Expected Return	Standard Deviation	Correlation with Microsoft	Correlation with Wal-Mart
	Microsoft	44%	24%	1.0	0.7
	Wal-Mart	23%	14%	0.7	1.0
a. Compute the expected return of a portfolio that consists of a long position of $10,000 in Wal-Mart and a short position of $2000 in Microsoft.
b. Consider a portfolio consisting of Microsoft and Wal-Mart. Calculate the expected return on such a portfolio when the weight on Microsoft stock is 0%, 25%, 50%, 75%, and 100%.