1. MBUI merchants have designed an investment portfolio package to invest some excess cash amounting to Kenya shillings 183 million. The company is considering securities as the investment vehicle. The selection of the portfolio is presented in the schedule below.

INVESTMENT	EXPECTED RETURN
Kakuzi Limited	8%
Standards Bank	12.1%
Total Kenya	9.2%
Kenya power limited	4%
Hotel Serena	5.3%
BP Shell	16.4%
Kapchorua Tea Limited	1.1%
Wal-Mart	18%
Dell computers	11%
General electric	11%
Johnson & Johnson	3%
Kenol Kobil	2%

REQUIRED

You have been approached by the management of Endelea merchants who are eager to know the expected return of the portfolio. You have been made aware that the formation of the portfolio is based on the Ksh 183 million committing the funds in equal amounts to each of the companies identified. Advise the management accordingly