Part 2 - question 6

b) Amelia has $50,000 cash on hand today. She plans to set up an investment portfolio today. She wants to invest $11,000 in Share A and $13,000 in Bond B. The remaining amount will be invested in a 12-month term deposit which pays interest at 3% p.a. effective. Over the following 12 months, share As expected return is 15%. Bond Bs expected return is 6%.

Calculate the expected return for Amelias investment portfolio over the following 12 months. (Round your answer to the nearest 0.01%) (3 marks)