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Using the following information to calculate the expected return of a two-stock portfolio. Characteristics for this two-stock portfolio: Caffeine Plus Drink stock: Amount invested $40,000.

Using the following information to calculate the expected return of a two-stock portfolio. Characteristics for this two-stock portfolio: Caffeine Plus Drink stock: Amount invested $40,000. Expected Return = 11%. Standard Deviation = 15%; Sparkling Drink Stock: Amount invested $60,000. Expected Return = 25%. Standard Deviation = 20%. Correlation between Caffeine Plus Drink stock and Sparkling Drink stock is 0.30.

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