Exhibit 6-6
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

Exhibit 6-6
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{c}\begin{array}{cc}\text { Asset }(A) & \text { Asset }(B) \\\hline E\left(R_{A}\right) =16 \% & E\left(R_{B}\right) =10 \% \\\left(\sigma_{A}\right) =9 \% & \left(\sigma_{B}\right) =7 \% \\W_{A}=0.5 & W_{B}=0.5\end{array}\\\mathrm{COV}_{\mathrm{AB}}=0.0009\end{array}$
-Refer to Exhibit 6-6. What is the expected return of a portfolio of two risky assets if the expected return E(R_i) , standard deviation (?_i) , covariance (COV_i,j) , and asset weight (W_i) are as shown above?

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