Exhibit 71
Use the Information Below for the Following Problem(S)

Exhibit 7.1
Use the Information Below for the Following Problem(S)
$\begin{array}{cc}\text { Asset }(A) & \text { Asset }(B) \\\hline\left(R_{A}\right) =10 \% & E\left(R_{B}\right) =15 \% \\\left(\sigma_{A}\right) =8 \% & \left(\sigma_{B}\right) =9.5 \% \\W_{A}=0.25 & W_{B}=0.75 \\&\text { CoV }_{A}=0.006\end{array}$

-Refer to Exhibit 7.1.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) 8.79%
B) 12.5%
C) 13.75%
D) 7.72%
E) 12%