Exhibit 711
Use the Information Below for the Following Problem(S)

question 81

Multiple Choice

Exhibit 7.11
Use the Information Below for the Following Problem(S)
$\begin{array}{ccc}\text { Asset } 1 & & \text { Asset 2 } \\\hline E\left(R_{1}\right) =0.28& & E\left(R_{2}\right) =0.12 \\E\left(\sigma_{1}\right) =0.15 & &E\left(\sigma_{2}\right) =0.11 \\W_{1}=0.42 & & W_{2}=0.58 \\& r_{12}=0.7 &\end{array}$
-Refer to Exhibit 7.11.Calculate the expected return of the two stock portfolio.

• A) 0.107
• B) 0.1367
• C) 0.1169
• D) 0.1872
• E) 0.20

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Definitions:

Illegal Strike

A work stoppage by a group of workers that is not authorized by the relevant labor laws or violates a binding labor agreement.

Union Shop

A workplace where employees are not required to join the union in order to be hired, but must join within a certain period of being employed and remain members as a condition of employment.

Closed Shop

A workplace where only workers who are already members of the union can be hired.

Agency Shop

A workplace where employees are not required to join the union, but must pay union dues as the union negotiates on behalf of all employees.