Exhibit 72
Use the Information Below for the Following Problem(S)

question 51

Multiple Choice

Exhibit 7.2
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } A _ { 1 } + ( A ) & \text { AEEE } ( \mathbf { E } ) \\\hline E \left( R _ { A } \right) = 25 \% & E \left( R _ { B } \right) = 15 \% \\\left( \sigma _ { A } \right) = 19 \% & \left( \sigma _ { B } \right) = 11 \% \\W _ { A } =0 .75 & W _ { B } =0 .25 \\C O V _ { A , B } = - 0.0009\end{array}$$
-Refer to Exhibit 7.2.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) 18.64%
• B) 20.0%
• C) 22.5%
• D) 13.65%
• E) 11%

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Definitions:

Information Technology

Applying computers, storage units, network systems, and other tangible tools, infrastructures, and techniques to produce, process, secure, and exchange any kind of electronic data.

Contingency Thinking

An approach that considers various possible futures or outcomes and prepares strategies accordingly.

Environmental Differences

Variations in the external surroundings that can influence an organization's operations, including cultural, economic, political, and technological factors.

Human Resources Thinking

A perspective that emphasizes the strategic management of people within an organization to achieve competitive advantage.