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A portfolio is invested 50 percent in Stock A; 30 percent in Stock B; and 20 percent in one bond. The bond has an expected

A portfolio is invested 50 percent in Stock A; 30 percent in Stock B; and 20 percent in one bond. The bond has an expected return of 7.25 percent and Stock B has expected return of 12 percent. What is the expected rate of return of Stock A if the portfolio's expected return is 10.80 percent?

A.

12.5 percent

B.

11.5 percent

C.

9.5 percent

D.

10.5 percent

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