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Consider the following information on portfolio weights, predicted returns and standard deviation of returns for two restaurant stocks, Super Foods Inc., and Henry's Dining Corp.

Consider the following information on portfolio weights, predicted returns and standard deviation of returns for two restaurant stocks, Super Foods Inc., and Henry's Dining Corp. Assume the correlation between two stocks is 0.4. Given the information, what is the portfolio's expected return? Provide your finals answer in decimal points (e.g. 0.13) and not in percent terms (e.g. 13%).

Stock

Weights

Return

Standard Deviation

Super Foods Inc.

0.63

0.14

0.03

Henry's Dining Corp.

(1-0.63)

0.10

0.03

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