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26. Penny inherited a $200,000 portfolio of investments from her grandparents when she turned 21. The portfolio is comprised of treasury bills and stock in
26. Penny inherited a $200,000 portfolio of investments from her grandparents when she turned 21. The portfolio is comprised of treasury bills and stock in Ford and Harley Davidson as follows. Based on the current portfolio composition and the expected returns, what is the expected rate of return for Penny's portfolio?
Expected Return | $ Value | |
Treasury Bills | 4.5% | $ 80,000.00 |
Ford | 8.0% | $ 60,000.00 |
Harley Davidson | 12.0% | $ 60,000.00 |
a. 7.8%
b. 8.7%
c. 7.0%
d. 8.0%
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