You hold a portfolio that has an expected return of 9.75% and a value of $85,000. You are in the process of buying 1,500 shares of ABC Corp at $10 a share and adding it to your portfolio. ABC has an expected return of 12.5%. What is the expected return on the portfolio after the purchase of ABC stock? Do not round your intermediate calculations.

a. 9.98%

b. 10.27%

c. 8.85%

d. 9.25%

e. 10.16%