Exhibit 76
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Exhibit 7.6
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) $$\begin{array} { c c } \text { Asset } ( \mathrm { A } ) & \text { Asset } ( \mathrm { B } ) \\\hline \mathrm { E } \left( \mathrm { R } _ { \mathrm { A } } \right) = 16 \% & \mathrm { E } \left( \mathrm { R } _ { \mathrm { B } } \right) = 10 \% \\\left( \sigma _ { \mathrm { A } } \right) = 9 \% & \left( \sigma _ { \mathrm { B } } \right) = 7 \% \\W _ { \mathrm { A } } = 0.5 & W _ { \mathrm { B } } = 0.5 \\\mathrm { COV } V _ { \mathrm { A,B } } = 0.0009\end{array}$$
-Refer to Exhibit 7.6. 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) 10.6 %
B) 10.2%
C) 13.0%
D) 11.9%
E) 14.0%