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

question 74

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 6.8. 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) 6.4%
• B) 9.1%
• C) 10.2%
• D) 10.8%
• E) 11.2%

---

Definitions:

Personal Integrity

The quality of being honest and having strong moral principles that one refuses to violate.

Leadership

The act of guiding or directing a group towards achieving a goal.

Followers

Individuals who accept the guidance, direction, or leadership of another, often within the context of an organizational setting or movement.

Referent Power

A form of influence derived from the attractiveness and charisma of the leader, which encourages others to follow.