Exhibit 712
Use the Information Below for the Following Problem(S)

Multiple Choice

Exhibit 7.12
Use the Information Below for the Following Problem(S)
$\begin{array}{cc}\text { Asset } 1 & \text { Asset 2 } \\\hline E\left(R_{1}\right) =.12 & E\left(R_{2}\right) =.16 \\E\left(\sigma_{1}\right) =.04 & E\left(\sigma_{2}\right) =.06\end{array}$
-Refer to Exhibit 7.12.Calculate the expected return and expected standard deviation of a two stock portfolio when r?,? = -.60 and w? = .75.

A) .13 and .0024
B) .13 and .0455
C) .12 and .0585
D) .12 and .5585
E) .13 and .6758