Ali invests 70% of his portfolio in Qibla Cola and 30% in Sahabah Shoes. The expected dollar return on Qibla Cola is 15% with a standard deviation of 23%, while for Sahabah shoes its 40% with a standard deviation 51%. By assuming beta of Qibla Cola is 0.9 and beta of Sahabah Shoes is 1.3, T-bills rate is 5% and the market premium risk is 7%, do the following: Based on the above data, what is the market expected return (Km)?

Select one:

a. 7%

b. 55%

c. 5%

d. 12%

e. 74%