Exhibit 78
Use the Information Below for the Following Problem(S)

Multiple Choice

Exhibit 7.8
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asser (A) & \text { Asset ( B) } \\\mathrm { E } \left( R _ { A } \right) = 1 [ \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 14 \% \\\left( \sigma _ { A } \right) = 7 / & \left( \sigma _ { B } \right) = 8 \% \\W _ { A } =0 .7 & W _ { B } = 0 .3 \\C O V _ { A , B } = 0 .0013\end{array}$$
-Refer to Exhibit 7.8.What is the standard deviation of this portfolio?

A) 4.51%
B) 5.94%
C) 6.75%
D) 7.09%
E) 8.62%