Exhibit 74
Use the Information Below for the Following Problem(S)

question 3

Multiple Choice

Exhibit 7.4
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset (A) & \text { Asset (B) } \\\mathrm { E } \left( R _ { A } \right) = 1 [ \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = \mathrm { g } \% \\\left( \sigma _ { A } \right) = 6 \% & \left( \sigma _ { B } \right) = 5 \% \\W _ { A } =0 .3 & W _ { B } =0 .7 \\C O V _ { A , B } =0 .0008\end{array}$$
-Refer to Exhibit 7.4.What is the standard deviation of this portfolio?

• A) 5.02%
• B) 3.88%
• C) 6.21%
• D) 4.04%
• E) 4.34%

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Definitions:

Statement of Cash Flows

A financial report showing the cash inflows and outflows from operating, investing, and financing activities over a period.

Operating Activities

Operating activities involve the primary revenue-generating activities of an entity, as reflected in its profits or losses from core operations.

Depreciation

The method of allocating the cost of a tangible asset over its useful life, reflecting the loss of value over time.

Accounts Payable

Liabilities to creditors for goods, services, or supplies delivered or used in the earning process but not yet paid for.