18.

Don has invested $3,000 invested in AT&T with an expected return of 11.6%. $10,000 in IBM with an expected return of 12.8% and $6000 in GM with an expected return of 12.2%. The stock betas are 1.2, 1.4 and 0.7 respectively. What is Dons expected return on his portfolio?

A. 12.42

B. 13.25

C. 11.81

D. 10.56