11. Below is Megan Peters investment portfolio:

a) Calculate the expected return of her portfolio.

Stock % of Portfolio Expected Return

Cracker Barrel 15% 22 %

Enterprise Rent a Car 25 16

Red Roof Hotels 10 12

Cheesecake Factory 20 20

Dominos Pizza 30 09

b) If you could only choose one, which of the following investments below would you

choose and why?

Stock Return Variance

Adidas 10% 14%

Nike 7% 5%

Morgan Stanley 12% 20%