Exhibit 710
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 90

Multiple Choice

Exhibit 7.10
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset } ( \mathrm { A } ) & \text { Asset } ( \mathrm { B } ) \\\hline \mathrm { E } \left( \mathrm { R } _ { \mathrm { A } } \right) = 16 \% & \mathrm { E } \left( \mathrm { R } _ { \mathrm { B } } \right) = 14 \% \\\left( \sigma _ { \mathrm { A } } \right) = 3 \% & \left( \sigma _ { \mathrm { B } } \right) = 8 \% \\W _ { \mathrm { A } } = 0.5 & W _ { \mathrm { B } } = 0.5 \\\mathrm { COV } V _ { \mathrm { A,B } } = 0.0014\end{array}$$
-Refer to Exhibit 7.10. 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)11%
• B)12%
• C)13%
• D)14%
• E)15%

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Definitions:

Revised Article 3

An update or modification to Article 3 of the Uniform Commercial Code (UCC), which governs negotiable instruments including checks and promissory notes.

Holder by Negotiation

Holder by negotiation refers to a person who has obtained possession of a negotiable instrument, such as a check, in a manner consistent with the statute's requirements for transfer, thereby acquiring the right to payment.

Involuntary

Occurring without a person's consent or against their will, often referring to actions or processes not chosen by an individual or group.

For Deposit Only

An endorsement on a check indicating that it can only be deposited into an account, not cashed.