Question $13-$PMO$-5$

The expected returns on Stocks $x$ and $Y$ for each of the next $5$ years are as follows:

An investor builds a $2-$stock portfolio by investing $$55,000$ in Stock $x$ and $$25,000$ in Stock $Y.$ Using the expected arithmetic average returns of Stock $x$

and $Y$ and the portfolio weights of each stock, determine the expected portfolio return. Do not round your intermediate calculations and report your

final answer as a percentage to $2$ decimal places. $($Hint: You may need to use your answers to the previous problems labeled $13-$PMO to answer this

question.$)$