Exhibit 6.10

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Asset (A)	Asset (B)
E(RA) = 16%	E(RB) = 14%
(A) = 3%	(B) = 8%
WA = 0.5	WB = 0.5
COVA,B = 0.0014

Refer to Exhibit 6.10. 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.	14%
	b.	12%
	c.	13%
	d.	15%
	e.	11%