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Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations Stock Duke Energy Microsoft Expected Return 14% 44% Standard Deviation

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Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations Stock Duke Energy Microsoft Expected Return 14% 44% Standard Deviation 6% 24% Correlation with Correlation with Correlation with Duke Energy Microsoft Wal-Mart 1.0 -10 0.0 -10 1.0 0.7 O A. Wal-Mart and Microsoft OB Microsoft and Duke Energy OC. Duke Energy and Wal-Mart OD. No combination will reduce risk

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