Sheldon wants to make a $4,000 contribution to his IRA. He wants to purchase Stock G using the entire contribution. The stock has an expected rate of return of 8% over the next five years. He would like to know the expected rate of return of the new portfolio, including this stock (Stock G), if his existing holdings continue to perform at a rate equal to their average rate of return. Also, will this new portfolio return exceed the rate of return he wants to assume for planning purposes, as stated in the Investment Data section of the case?

Sheldon's IRA