Exhibit 76
Use the Information Below for the Following Problem(S)

question 18

Multiple Choice

Exhibit 7.6
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset (A) & \text { Asset(B) } \\\mathrm { E } \left( R _ { A } \right) = 16 \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 10 \% \\\left( \sigma _ { A } \right) = 9 \% & \left( \sigma _ { B } \right) = 7 / \\W _ { A } = 0 .5 & W _ { B } =0 .5 \\C O V _ { A , B } = 0 .0009\end{array}$$
-Refer to Exhibit 7.6.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) 10.6 %
• B) 10.2%
• C) 13.0%
• D) 11.9%
• E) 14.0%

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Definitions:

Coalition Partners

Members of a temporary alliance formed between parties or organizations for achieving shared goals.

Criteria

Standards or principles used to evaluate, judge, or make decisions regarding various options or actions.

Unequal Share

A division of resources, responsibilities, or benefits where the portions are not evenly distributed among parties.

Early Prospects

Initial opportunities or possibilities that arise at the beginning of a process.