Exhibit 72
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 50

Multiple Choice

Exhibit 7.2
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset } ( \mathrm { A } ) & \text { Asset } ( \mathrm { B } ) \\\hline \mathrm { E } \left( \mathrm { R } _ { \mathrm { A } } \right) = 25 \% & \mathrm { E } \left( \mathrm { R } _ { \mathrm { B } } \right) = 15 \% \\\left( \sigma _ { \mathrm { A } } \right) = 18 \% & \left( \sigma _ { \mathrm { B } } \right) = 11 \% \\W _ { \mathrm { A } } = 0.75 & W _ { \mathrm { B } } = 0.25 \\\mathrm { CO } V _ { \mathrm { AB } _ { \mathrm { B } } } = - 0.0009\end{array}$$
-Refer to Exhibit 7.2. What is the expected return of a portfolio of two risky assets if the expected return E(R_i) , standard deviation ( $\sigma$ _i) , covariance (COV_i,j) , and asset weight (W_i) are as shown above?

• A)18.64%
• B)20.0%
• C)22.5%
• D)13.65%
• E)11%

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Definitions:

Recovery

The process of returning to a normal state of health, mind, or strength following illness, addiction, or trauma.

Depression

A mental health disorder characterized by persistently depressed mood or loss of interest in activities, causing significant impairment in daily life.

Aggression

Behavior intended to harm or intimidate others.

Secondary Reinforcers

Stimuli that become reinforcing through their association with primary reinforcers, such as money earning value through its relation to buying food.