QUESTION $17$

What is the expected return of a portfolio with two stocks that has $529$ shares of stock A$,$ which has a price of $$32\mathrm{.}50$ per share and an expected return of $10\mathrm{.}03\%,$ and $$51\mathrm{.}500\mathrm{.}00$ of stock B$,$ which has a beta of $1\mathrm{.}54?$ The market has an expected return of $14\mathrm{.}94\%,$ the inflation rate is $1\mathrm{.}03\%,$ and the risk$-$free rate is $2\mathrm{.}24\%.$

$2144\%($plus or minus $4$ bps$)$

$20\mathrm{.}25\%($plus or minus $4$ bps$)$

$18\mathrm{.}85\%($plus or minus $4$ bps$)$

$17\mathrm{.}17\%($plus or minus $4$ bps$)$

None of the above is within $4$ bps of the correct answer