Stock A has a beta of 1.5 and an expected return of 10%. Stock B has a beta of 1.1 and an expected return of 8%. The current market price for stock A is $20 and the current market price for stock B is $30. The expected return for the market is 7.5%. What is the expected return on a portfolio consisting of 60 shares of stock A, 100 shares of stock B and $1,100 worth of T-bills.

1. 6.7%
2. 7.0%
3. 7.3%
4. 7.7%
5. None of the above