Exhibit 79
Use the Information Below for the Following Problem(S)

Multiple Choice

Exhibit 7.9
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset( A ) & \text { Asset } (B) \\\mathrm { E } \left( R _ { A } \right) = 19 \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 13 \% \\\left( \sigma _ { A } \right) = 7\% & \left( \sigma _ { B } \right) = 6 \% \\W _ { A } =0 .3 & W _ { B } = 0 .7 \\C O V _ { A , B } =0 .0011\end{array}$$
-Refer to Exhibit 7.9.What is the expected return of a portfolio of two risky assets if the expected return E(R?) ,standard deviation (s?) ,covariance (COV?,?) ,and asset weight (W?) are as shown above?

A) 10.10%
B) 11.60%
C) 13.88%
D) 14.50%
E) 15.37%