Exhibit 74
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 45

Multiple Choice

Exhibit 7.4
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset } ( \mathrm { A } ) & \text { Asset } ( \mathrm { B } ) \\\hline \mathrm { E } \left( \mathrm { R } _ { \mathrm { A } } \right) = 10 \% & \mathrm { E } \left( \mathrm { R } _ { \mathrm { B } } \right) = 8 \% \\\left( \sigma _ { \mathrm { A } } \right) = 6 \% & \left( \sigma _ { \mathrm { B } } \right) = 5 \% \\\mathrm {~W} _ { \mathrm { A } } = 0.3 & \mathrm {~W} _ { \mathrm { B } } = 0.7 \\\mathrm { CO } V _ { \mathrm { A,B } } = 0.0008\end{array}$$
-Refer to Exhibit 7.4. 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)8.6%
• B)8.1%
• C)9.3%
• D)10.2%
• E)11.6%

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Definitions:

Withdrawn and Depressed

A state in which individuals pull away from social interactions and experience persistent feelings of sadness, hopelessness, and disinterest in life.

Sexual Abuse

Any non-consensual sexual act or behavior imposed on someone, typically involving coercion, manipulation, or force.

Stress and Anger

Psychological and emotional responses to perceived challenges or threats, often manifesting as frustration or hostility.

Humor

Humor is a cognitive response to stimuli that leads to feelings of amusement, often resulting in laughter or a sense of enjoyment.