Refer to Exhibit 7.1. 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? Exhibit 7.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Asset (A)	Asset (B)
E(RA) = 10%	E(RB) = 15%
(sA) = 8%	(sB) = 9.5%
WA = 0.25	WB = 0.75
CovA,B = 0.006

Select one:

a. 8.79%

b. 12.5%

c. 13.75%

d. 7.72%

e. 12%