Exhibit 79
Use the Information Below for the Following Problem(S)

question 86

Multiple Choice

Exhibit 7.9
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset( A ) & \text { Asset } (B) \\\mathrm { E } \left( R _ { A } \right) = 19 \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 13 \% \\\left( \sigma _ { A } \right) = 7\% & \left( \sigma _ { B } \right) = 6 \% \\W _ { A } =0 .3 & W _ { B } = 0 .7 \\C O V _ { A , B } =0 .0011\end{array}$$
-Refer to Exhibit 7.9.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) 10.10%
• B) 11.60%
• C) 13.88%
• D) 14.50%
• E) 15.37%

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Definitions:

Receivable Turnover

A financial metric that measures how effectively a company is collecting on its receivables, calculated as sales divided by the average accounts receivable.

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Acid-test Ratio

A financial metric that assesses a company's ability to quickly liquidate assets to cover short-term liabilities, excluding inventory.

Debt-to-equity Ratio

A financial measure that reflects the balance of debt and equity used in funding a company's assets.