TOPIC 8 RISK & RETURN 1. Jerry love to ride a motorbike and enjoy doing it. That's is one of a reason he preferred to bought Motorbike equities. Below is the market values of stocks in his portfolio and their expected rates of return. What is the expected rate of return for his common stock portfolio? Stock Market Value (RM) Security Return E(Ri) Suzuki 12,000 0.7 Kawasaki Yamaha 18,000 33,000 -0.03 0.17 Honda 27,000 0.12 Modenas 7,000 0.05