Exhibit 712
Use the Information Below for the Following Problem(S)

question 71

Multiple Choice

Exhibit 7.12
Use the Information Below for the Following Problem(S)
$\begin{array}{cc}\text { Asset } 1 & \text { Asset 2 } \\\hline E\left(R_{1}\right) =.12 & E\left(R_{2}\right) =.16 \\E\left(\sigma_{1}\right) =.04 & E\left(\sigma_{2}\right) =.06\end{array}$
-Refer to Exhibit 7.12.Calculate the expected return and expected standard deviation of a two stock portfolio when r?,? = -.60 and w? = .75.

• A) .13 and .0024
• B) .13 and .0455
• C) .12 and .0585
• D) .12 and .5585
• E) .13 and .6758

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Definitions:

Pre-employment

Pertaining to processes or assessments that occur before an individual officially becomes an employee.

Psychological Contract

An unwritten agreement that sets out mutual expectations between employees and employers, including informal arrangements, perceived promises, and obligations.

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The experience of realizing that the actualities of a situation or environment are different from one's expectations or beliefs.

Corporate Culture

The collection of beliefs, values, attitudes, and behaviors that shapes the social and psychological environment of a business organization.