The role of senior management in a firm is primarily to:

Select one:

a. Increase the size of the firm's asset base.

b. Avoid significant risks so as not to bankrupt the firm.

c. Increase their own bonuses and salaries.

d. None of the above.

e. Enhance the value of the firm's shares for the benefit of its shareholders.

You have invested 40% of your money in Microsoft and the balance in Tesla. Microsofts expected return is 11.03%. Tesla has an expected return of 17.83%. The correlation between the stock returns is .33. What is the portfolio expected return?

Select one:

a. 6.05%

b. 12.76%

c. 8.88%

d. 15.11%