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A risky portfolio is composed of Stock A and Bond B. Stock A has an expected return of 14%, and Bond B has an expected

A risky portfolio is composed of Stock A and Bond B. Stock A has an expected return of 14%, and Bond B has an expected return of 8%. If you invest 40% in Stock A and 60% in Bond B, what is the expected return of the portfolio?

A) 11.0%

B) 9.6%

C) 10.4%

D) 12.1%

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Question

A risky portfolio is composed of Stock A and Bond B. Stock A has an expected return of 14%, and Bond B has an expected

A risky portfolio is composed of Stock A and Bond B. Stock A has an expected return of 14%, and Bond B has an expected return of 8%. If you invest 40% in Stock A and 60% in Bond B, what is the expected return of the portfolio? A) 11.0% B) 9.6% C) 10.4% D) 12.1%

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A risky portfolio is composed of Stock A and Bond B. Stock A has an expected return of 14%, and Bond B has an expected return of 8%. If you invest 40% in Stock A and 60% in Bond B, what is the expected return of the portfolio?

A) 11.0%

B) 9.6%

C) 10.4%

D) 12.1%