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

question 88

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 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) 8.6%
• B) 8.1%
• C) 9.3%
• D) 10.2%
• E) 11.6%

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Definitions:

Christianity

A monotheistic religion based on the life and teachings of Jesus Christ, with numerous denominations worldwide.

Black Slaves

Individuals of African descent who were forcibly transported to and enslaved in various parts of the world, particularly in the Americas, from the 16th to the 19th centuries.

Nat Turner Rebellion

An enslaved African American who led a rebellion in Virginia in 1831, marking a significant event in the antebellum southern United States.

Angelina Grimkè

An American abolitionist, writer, and member of the women's suffrage movement, known for her activism against slavery and for women's rights.