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

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 returns and expected standard deviations of a two stock portfolio when r?,? = .80 and w? = .60.

A) .144 and .0002
B) .144 and .0018
C) .136 and .0045
D) .136 and .0455
E) .136 and .4554