Question: Exhibit 7-8 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) Asset (A) Asset (B) E(R A ) = 10% E(R B ) = 14% (s

Exhibit 7-8 USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Asset (A)

Asset (B)

E(RA) = 10%

E(RB) = 14%

(sA) = 7%

(sB) = 8%

WA = 0.7

WB = 0.3

COVA,B = 0.0013

Refer to Exhibit 7-8. What is the standard deviation of this portfolio?

a.

7.09%
b.

8.62%
c.

6.75%
d.

5.94%
e.

4.51%

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