Exhibit 71
Use the Information Below for the Following Problem(S)

question 11

Multiple Choice

Exhibit 7.1
Use the Information Below for the Following Problem(S)
$\begin{array}{cc}\text { Asset }(A) & \text { Asset }(B) \\\hline\left(R_{A}\right) =10 \% & E\left(R_{B}\right) =15 \% \\\left(\sigma_{A}\right) =8 \% & \left(\sigma_{B}\right) =9.5 \% \\W_{A}=0.25 & W_{B}=0.75 \\&\text { CoV }_{A}=0.006\end{array}$

-Refer to Exhibit 7.1.What is the standard deviation of this portfolio?

• A) 8.79%
• B) 13.75%
• C) 12.5%
• D) 7.72%
• E) 5.64%

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Definitions:

Profitability Ratios

Financial metrics used to evaluate a company's ability to generate earnings relative to its revenue, assets, equity, or other financial metrics.

Revenues

The total amount of income generated by the sale of goods or services related to the company's primary operations.

Operating Costs

Expenses associated with running a business on a daily basis, such as salaries, rent, and utilities.

Activity

Any action or series of actions performed by individuals or groups, often aimed at achieving a particular goal or outcome.