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Use the table for the question(s) below. Consider the following expected retums, volatilities, and correlations: 0.0 Expected Standard Correlation with Correlation with Correlation with Stock

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Use the table for the question(s) below. Consider the following expected retums, volatilities, and correlations: 0.0 Expected Standard Correlation with Correlation with Correlation with Stock Return Deviation Duke Energy Microsoft Wal-Mart Duke Energy 14% 6% 1.0 - 1.0 Microsoft 44% 24% - 1.0 Wal-Mart 23% 14% 0.0 Which of the following combinations of two stocks would give you the biggest reduction in risk? 0.7 0.7 O A. Wal - Mart and Microsoft 1 O B. Microsoft and Duke Energy | OC. Duke Energy and Wal Mart OD. No combination will reduce risk

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