Use the table for the question(s) below. Consider the following expected returns, volatilities, and correlations: Stock Duke Energy Microsoft Wal-Mart Expected Standard Correlation with Correlation with Return Deviation Duke Energy Microsoft 6% 14% - 1.0 44% 23% O A. 10% OB. 80% OC. 23% 24% 14% 1.0 - 1.0 0.0 1.0 0.7 Correlation with Wal-Mart 0.0 0.7 1.0 Consider a portfolio consisting of only Duke Energy and Microsoft. The percentage of your investment (portfolio weight) that you would place in Duke Energy stock to achieve a ris investment would be closest to:

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Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

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Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.