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The probability distribution of rates of return of two stocks, A&B, is shown below. Rate of return.(%) Probability 0.1 5 20 B 0.4 10 10

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The probability distribution of rates of return of two stocks, A&B, is shown below. Rate of return.(%) Probability 0.1 5 20 B 0.4 10 10 5 25 0.4 20 0.1 - 5 If you invest 40% of your money on stock A and 60% on stock B, what will be the expected rate of return on your portfolio? Select one: a. 10.8% b. 8.7% c. 9.5% d. 10.5% e. 9.75%

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