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

question 67

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 expected return of a portfolio of two risky assets if the expected return E(R?) ,standard deviation (s?) ,covariance (COV?,?) ,and asset weight (W?) are as shown above?

• A) 8.79%
• B) 12.5%
• C) 13.75%
• D) 7.72%
• E) 12%

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Definitions:

White Blood Cells

Cells of the immune system that are involved in protecting the body against both infectious disease and foreign invaders.

Immune System

The body's defense mechanism against infections, diseases, and foreign substances, consisting of various cells, tissues, and organs.

Stress Hormones

Chemicals released by the body in response to stress, such as cortisol and adrenaline, which prepare the body to face a threat or flee.

Heart Attack Susceptibility

The likelihood or predisposition of an individual to suffer from a myocardial infarction, often due to genetics, lifestyle, or health conditions.