Consider the following information for the BU Scholarship Investment

Fund. The total investment in the fund is $1 million.

STOCK INVESTMENT BETA EXPECTED RETURN

A $200,000 1.5 25%

B $300,000 0.5 4%

C $500,000 1.25 15%

Based on the allocation of dollars among the three stocks and their

expected return, calculate the expected rate of return for the BU

Scholarship Investment Fund.

A 14.67%

B 18.8

C 13.7

D 44.0

E Insufficient information to compute