TB MC Qu$.8-10$ Florida Company $($FC$)$ and Minnesota Company...

Florida Company $($FC$)$ and Minnesota Company $($MC$)$ are both service companies. Their stock returns for the past three years were as follows: FC: $-16$ percent, $37$ percent, $27$

percent; MC: $18$ percent, $21$ percent, $27$ percent. If FC and MC are combined into a portfolio with $50$ percent of the funds invested in each stock, calculate the expected return

on the portfolio.

Multiple Choice

$20$ percent

$18$ percent

$19$ percent

$17$ percent