A fixed-income portfolio has the following estimated exposures: 35% intermediate government bonds, 40% investment-grade credit, 5% securitized, and 20% high yield. The expected component returns are: short-term government bonds (0.25%); intermediate government bonds (1.50%); Long government bonds (3.00%); Investment-grade credit (4.25); MBS/Securitized (1.75%); high yield (5.75%). Express and calculate the expected return of the portfolio.

Choices

A) 3.46% B) 3.21% C) 3.71%