USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
$\sigma$ I), Covariance (COV_i,j), and Asset Weight (W_i) Are as Shown

question 27

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
​
-Refer to Exhibit 6.7. What is the expected return of a portfolio of two risky assets if the expected return E(R_i) , standard deviation ( $\sigma$ i) , covariance (COV_i,j) , and asset weight (W_i) are as shown above?

• A) 5.8%
• B) 6.1%
• C) 6.9%
• D) 7.8%
• E) 8.9%

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Definitions:

Na2Cr2O7

Sodium dichromate is an inorganic compound consisting of sodium, chromium, and oxygen, used as an oxidizing agent in various chemical reactions, including those in organic chemistry.

Fatty Acid

A type of carboxylic acid that is often found in lipids, characterized by a long hydrocarbon chain which can be saturated or unsaturated.

Wax

A class of chemical compounds that are malleable at ambient temperatures and typically melt upon heating, often of natural or synthetic origin.

Stressor Defense

Strategies or mechanisms adopted by an individual or system to protect against stress or stress-induced conditions.