Ford $($F$)$ and Harley Davidson $($HOG$)$: $.$

a$.$ Based on the current portfolio composition and the expected rates of return, what is the expected rate of return for Penny's portfolio?

Treasury bills and splits it evenly between the two stocks, what will be her expected rate of return?

c$.$ If Penny does move money out of Treasury bills and into the two stocks, she will reap a higher expected portfolio return, so why would anyone want to hold Treasury bills in their portfolio?

a$.$ Based on the current portfolio composition and the given expected rates of return, the expected rate of return for Penny's portfolio is $\%.($Round to two decimal places.$)$

b$.$ If Penny moves all her money out of Treasury bills and splits it evenly between the two stocks, her expected rate of return for her portfolio is $\%.($Round to two decimal places.$)$

A$.$ There is no reason for anyone to ever hold Treasury bills in their portfolios.

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