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Steve currently has an investment portfolio that contains four stocks with a total value equal to $80,000. The portfolio has an expected return equal to
Steve currently has an investment portfolio that contains four stocks with a total value equal to $80,000. The portfolio has an expected return equal to 14%. In order to earn higher returns, Steve wants to invest an additional $20,000 in a stock that has return equal 25%. After Steve adds the new stock to his portfolio, what will the portfolio's annual expected return be?
Group of answer choices
A. 16.2%
B. 11.2%
C. 5%
D. 19.5%
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