Exhibit 715
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 88

Multiple Choice

Exhibit 7.15
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset } ( \mathrm { A } ) & \text { Asset } ( \mathrm { B } ) \\\hline \mathrm { E } \left( \mathrm { R } _ { \mathrm { A } } \right) = 14 \% & \mathrm { E } \left( \mathrm { R } _ { \mathrm { B } } \right) = 16 \% \\\left( \sigma _ { \mathrm { A } } \right) = 13 \% & \left( \sigma _ { \mathrm { B } } \right) = 18 \% \\\mathrm {~W} _ { \mathrm { A } } = 0.4 & \mathrm {~W} _ { \mathrm { B } } = 0.6 \\\mathrm { CO } V _ { \mathrm { AB } } = 0.0024\end{array}$$
-Refer to Exhibit 7.15. 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)13.8%
• B)14.6%
• C)15.0%
• D)15.2%
• E)16.8%

Analyze the causes and consequences of poverty.

Recognize the legislative initiatives aimed at addressing poverty and welfare in the U.S.

Understand the dynamics of social mobility and barriers to it.

Comprehend the sociology concepts related to stratification, such as caste and class systems.

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Definitions:

IFRS

A collection of accounting standards known as International Financial Reporting Standards, developed by the International Accounting Standards Board, which directs the global preparation of financial statements.

Selling Goods

The act of transferring physical products or merchandise to a buyer in exchange for money or other compensation.

Cookie Jar Reserves

An accounting practice where companies store reserves in good years to smooth out earnings by releasing them in bad years, which can be seen as deceptive.

GAAP

The standard set of guidelines for financial accounting that is widely accepted and used within a certain jurisdiction, known as Generally Accepted Accounting Principles.