12.

Consider a portfolio consisting of the following three stocks:

	Portfolio Weight	Volatility	Correlation with the Market Portfolio
HEC	0.25	12%	0.9
Midget	0.35	25%	0.6
Well	0.4	13%	0.5

The volatility of the market portfolio is 10% and it has an expected return of 8%. The risk-free rate is 3%.

calculate the expected return of the portfolio.

Group of answer choices

6.37%

9.75%

7.65%

8.28%