Exhibit 76
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 4

Multiple Choice

Exhibit 7.6
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset } ( \mathrm { A } ) & \text { Asset } ( \mathrm { B } ) \\\hline \mathrm { E } \left( \mathrm { R } _ { \mathrm { A } } \right) = 16 \% & \mathrm { E } \left( \mathrm { R } _ { \mathrm { B } } \right) = 10 \% \\\left( \sigma _ { \mathrm { A } } \right) = 9 \% & \left( \sigma _ { \mathrm { B } } \right) = 7 \% \\W _ { \mathrm { A } } = 0.5 & W _ { \mathrm { B } } = 0.5 \\\mathrm { COV } V _ { \mathrm { A,B } } = 0.0009\end{array}$$
-Refer to Exhibit 7.6. 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)10.6 %
• B)10.2%
• C)13.0%
• D)11.9%
• E)14.0%

---

Definitions:

E-mail

E-mail, short for electronic mail, is a method of exchanging messages and documents over a network or the internet between two or more individuals.

Concluding Reflection

The final stage of an activity or process in which participants reflect on what has been learned or achieved, considering future implications and actions.

Blind Copy

A copy of a document or email sent to a recipient such that other recipients are unaware of that recipient's inclusion.

Unstated

Not explicitly expressed or mentioned, but implied or understood within a context.