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Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Correlation with Microsoft Expected Return 14% 44% 23% Stock Duke

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Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Correlation with Microsoft Expected Return 14% 44% 23% Stock Duke Energy Microsoft Wal-Mart Standard Deviation 6% 24% 14% Correlation with Duke Energy 1.0 Correlation with Wal-Mart 00 Which of the following combinations of two stocks would give you the biggest reduction in risk? O A. Microsoft and Duke Energy O B. Duke Energy and Wal-Mart O C. Wal-Mart and Microsoft OD. No combination will reduce risk

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