Use the following 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 expected return of a portfolio that is equally invested in Duke Energy and Microsoft is closest to; A. 28% B. 24% C. 29% D. 23%

Use the following table for the question(s) below Consider the following expected returns, volatilities, and correlations Stock Expected Return Standard Deviation Duke Energy Microsoft Wal-Mart 14% 44% 23% 6% 24% 14% Correlation with Duke Energy 1.0 -1.0 0.0 Correlation with Microsoft -1.0 1.0 0.7 Correlation with WalMart 0.0 0.7 1.0 The expected return of a portfolio that is equally invested in Duke Energy and Microsoft is closest to; A. 28% B. 24% C. 29% D. 23%