Exhibit 7B -Refer to Exhibit 7B

question 1

Multiple Choice

Exhibit 7B.l
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
The general equation for the weight of the first security to achieve the minimum variance (in a two stock portfolio) is given by:
$$\mathrm { W } _ { 1 } = \left[ \mathrm { E } \left( \sigma _ { 1 } \right) ^ { 2 } - \mathrm { r } _ { 1.2 } \mathrm { E } \left( \sigma _ { 1 } \right) \mathrm { E } \left( \sigma _ { 2 } \right) \right] \div \left[ \mathrm { E } \left( \sigma _ { 1 } \right) ^ { 2 } + \mathrm { E } \left( \sigma _ { 2 } \right) ^ { 2 } - 2 r _ { 1.2 } \mathrm { E } \left( \sigma _ { 1 } \right) \mathrm { E } \left( \sigma _ { 2 } \right) \right]$$
-Refer to Exhibit 7B.1.What is the value of W₁ when r₁.₂ = -1 and E(s₁) = .10 and E(s₂) = .12?

• A) 45.46%
• B) 50.00%
• C) 59.45%
• D) 54.55%
• E) 74.55%

Identify the practical first steps in estate planning.

Describe the characteristics and purposes of various types of trusts, including Testamentary trusts and Credit-Shelter trusts.

Recognize the non-legally binding nature of a letter of last instruction and its potential contents.

Analyze how personal situations impact estate planning.

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Definitions:

Differentiation

The process by which cells or tissues undergo a change toward a more specialized form or function during development.

Development

The process through which organisms grow and change over time, involving physical, biological, and sometimes psychological transformations.

Amnion

The amnion is a thin membrane that surrounds the embryo in mammals, birds, and reptiles, providing a protective environment.

Cell Differentiation

The process by which a cell becomes specialized to perform a specific function, often as part of developmental processes in multicellular organisms.