Exhibit 78
Use the Information Below for the Following Problem(S)

question 4

Multiple Choice

Exhibit 7.8
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asser (A) & \text { Asset ( B) } \\\mathrm { E } \left( R _ { A } \right) = 1 [ \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 14 \% \\\left( \sigma _ { A } \right) = 7 / & \left( \sigma _ { B } \right) = 8 \% \\W _ { A } =0 .7 & W _ { B } = 0 .3 \\C O V _ { A , B } = 0 .0013\end{array}$$
-Refer to Exhibit 7.8.What is the standard deviation of this portfolio?

• A) 4.51%
• B) 5.94%
• C) 6.75%
• D) 7.09%
• E) 8.62%

---

Definitions:

Similar Products

Items or services that share common features, functions, or characteristics with others, often within the same category.

Demand Factors

Variables that influence the desire and ability of consumers to purchase goods and services, such as price, income levels, and preferences.

Similar Products

Products that fulfill the same needs or wants and are therefore seen as alternatives or competitors to each other.

Consumer Tastes

Preferences or inclinations of consumers that influence their purchasing behavior, often shaped by cultural, social, and personal factors.