You are a manager of a risky portfolio p (consists of bonds and stocks) with an expected return E(p) = 16% and standard deviation sdevp = 22%. The risk free rate rf =

7% and the standard deviation of the risk free asset is sdevf = 0%

Your client chooses to invest 70% in your portfolio (p) and 30% (f) in the risk-free asset. What is the expected return of your client's portfolio? Select the closest answer.

• A. 19.8%
• B. 18.4%

C. 15.3%

D. 13.3%