(Related to Checkpoint 8.1) (Computing the portfolio expected rate of return) Penny Francis inhorited a $200,000 portfolio of irvestrnents from her grandparents when she turned 21 years of age. The portfolio is comprised of Treasury bills and stock in Ford (F) and Harley Davidson (HOG): a. Based on the current porticlio composition and the expected rates of return, what is the expocted rate of return for Penny's porticlio? b. If Penny wants to increase her expected portfolio rate of retum, she can increase the allocated weight of the portfolio she has imvested in stock (Ford and Hartey Davidson) and docrease hor holdings of Treasury bills. If Penny moves all her money cut of Treasury bills and sphits it ewenly between the lwo stocks, what wil bo her expecled rate of return? c. If Penny does move money out of Troasury bills and into the two stocks, she will reap a higher expected portfotio return, so why would anyone want to hold Treasury bills in their portfolio? a. Based on the current portfolio composition and the given expected rates of return, the expectod rale of retum for Penny's porticlio is \%. (Round to two decimal places.)