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 Babsen Corp at $10 a share and adding it to your portfolio. Babsen has an expected return of 12.5%. What is the expected return on the portfolio after the purchase of Babsen stock? Do not round your

intermediate calculations. a. 8.85% b. 9.25% c. 9.98%

d. 10.16%

e. 10.27%