Exhibit 77
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 16

Multiple Choice

Exhibit 7.7
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset } ( \mathrm { A } ) & \text { Asset } ( \mathrm { B } ) \\\hline \mathrm { E } \left( \mathrm { R } _ { \mathrm { A } } \right) = 7 \% & \mathrm { E } \left( \mathrm { R } _ { \mathrm { B } } \right) = 9 \% \\\left( \sigma _ { \mathrm { A } } \right) = 6 \% & \left( \sigma _ { \mathrm { B } } \right) = 5 \% \\\mathrm {~W} _ { \mathrm { A } } = 0.6 & \mathrm {~W} _ { \mathrm { B } } = 0.4 \\\mathrm { CO } V _ { \mathrm { A,B } } = 0.0014\end{array}$$
-Refer to Exhibit 7.7. 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)5.8%
• B)6.1%
• C)6.9%
• D)7.8%
• E)8.9%

---

Definitions:

Benchmarking Process

A method of comparing business processes and performance metrics to industry bests or best practices from other companies.

Performance Goals

Specific targets or objectives set by individuals or teams that aim to measure and achieve desired levels of performance.

Benchmark Partners

Entities or companies with which an organization compares its processes and performance to identify best practices and opportunities for improvement.

Non-financial Measures

Performance indicators that are not based on financial metrics, often used to track efficiency, quality, or customer satisfaction.