Exhibit 74
Use the Information Below for the Following Problem(S)

Exhibit 7.4
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset (A) & \text { Asset (B) } \\\mathrm { E } \left( R _ { A } \right) = 1 [ \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = \mathrm { g } \% \\\left( \sigma _ { A } \right) = 6 \% & \left( \sigma _ { B } \right) = 5 \% \\W _ { A } =0 .3 & W _ { B } =0 .7 \\C O V _ { A , B } =0 .0008\end{array}$$
-Refer to Exhibit 7.4.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) 8.6%
B) 8.1%
C) 9.3%
D) 10.2%
E) 11.6%