Question 8-3: Stock A has an expected return of 20% Stock B has an expected return of 12% 1. Calculate the expected returns for a portfolio of the two stocks if the weight of Stock A is 10% 2. Calculate the expected returns for a portfolio of the two stocks if the weight of Stock A is 75% A. ECR 10-90) = 10.00% and E(R75-25) = 75.00% B. ECR 10-90) = 90.00% and E(R25-25) = 25.00% C. E(R20-90) = 12.00% and E(R75-25) = 20.00% D. E(R20-90) = 88.00% and E(R75-25) = 80.00% E. ECR 10-90) = 12.80% = 12.80% and E(R75-25) = 18.00%