Stocks have a 12% expected return and 22% risk.

Bonds have a 7% expected return and 10% risk.

The expected return of a portfolio comprised of 70% stock and 30% bond is:

A. 18.4%

B. 10.5 %

C. Cant tell from the information provided. You need the return correlation between stocks and bond.

D.8.8%

E. 7.2%