Exhibit 710
Use the Information Below for the Following Problem(S)

question 8

Multiple Choice

Exhibit 7.10
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset ( A ) & \text { Asset(B) } \\\mathrm { E } \left( R _ { A } \right) = 16 \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 14 \% \\\left( \sigma _ { A } \right) = 3 \% & \left( \sigma _ { B } \right) = 0 \% \\W _ { A } =0 .5 & W _ { B } =0 .5 \\C O V _ { A , B } =0 .0014\end{array}$$
-Refer to Exhibit 7.10.What is the standard deviation of this portfolio?

• A) 3.02%
• B) 4.88%
• C) 5.24%
• D) 5.98%
• E) 6.52%

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Definitions:

Journalize

The method of documenting monetary transactions within a journal during the accounting cycle.

Services Rendered

Work or services provided by a company or individual to a client or customer.

Paid Cash

A transaction in which goods or services are paid for using physical money or through immediate electronic funds transfer, as opposed to using credit.

Placed on Account

Transactions recorded on credit, affecting accounts payable or receivable without immediate cash exchange.