Exhibit 76
Use the Information Below for the Following Problem(S)

Exhibit 7.6
Use the Information Below for the Following Problem(S)
$$\begin{array} { c c } Asset (A) & \text { Asset(B) } \\\mathrm { E } \left( R _ { A } \right) = 16 \% & \mathrm { E } \left( \mathrm { R } _ { B } \right) = 10 \% \\\left( \sigma _ { A } \right) = 9 \% & \left( \sigma _ { B } \right) = 7 / \\W _ { A } = 0 .5 & W _ { B } =0 .5 \\C O V _ { A , B } = 0 .0009\end{array}$$
-Refer to Exhibit 7.6.What is the expected return of a portfolio of two risky assets if the expected return E(R?) ,standard deviation (s?) ,covariance (COV?,?) ,and asset weight (W?) are as shown above?

A) 10.6 %
B) 10.2%
C) 13.0%
D) 11.9%
E) 14.0%