Suppose that you want to create an investment portfolio. You purchase 600 shares of stock A at a price of $100 per share. In addition, you also purchase 800 shares of stock B at a price of $150 per share. The expected return on Stock A is 11% while the expected return on stock B is 5%. Based on this information, answer the following questions.

1. What is the weight of Stock B in the portfolio? (Note: round to the nearest integer. For example,if the number is 54.7 round this to 55)

A. 67%

B. cannot be determined

C. 33%

2. What is expected return (approximately) from this portfolio?

A. 9.2%

B. 12%

C. 2%

D. 6.98%

3.

Suppose that Stock B's share prices decreases in value from $150 to $100. Stock A's share price doesn't change. Given the change in Stock B's price what would be the new expected return (approximately) of the portfolio?

A. 7.58%

B. 5.5%

C. 6.2%

D. 8.5%