Exhibit 710
Use the Information Below for the Following Problem(S)

question 8

Multiple Choice

Exhibit 7.10
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset ( A ) & \text { Asset(B) } \\\mathrm { E } \left( R _ { A } \right) = 16 \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 14 \% \\\left( \sigma _ { A } \right) = 3 \% & \left( \sigma _ { B } \right) = 0 \% \\W _ { A } =0 .5 & W _ { B } =0 .5 \\C O V _ { A , B } =0 .0014\end{array}$$
-Refer to Exhibit 7.10.What is the standard deviation of this portfolio?

• A) 3.02%
• B) 4.88%
• C) 5.24%
• D) 5.98%
• E) 6.52%

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Definitions:

Flexible

Capable of being easily modified to adapt to new conditions or circumstances without significant difficulty.

Customer Value Proposition (CVP)

A business or marketing statement that describes why a customer should buy a product or use a service, focusing on the unique value the product or service provides.

Effective

Refers to something being successful in producing a desired or intended result.

Direct Competition

Occurs when businesses offer the same or similar products or services to the same customer base.