1. You own a portfolio that has 2,650 shares of stock A, which is priced at $18.20 per share and has an expected return of 11.72%, and 3,901 shares of stock B, which is priced at $9.90 per share and has an expected return of 6.98%. The risk-free return is 2.93% and inflation is expected to be 1.26%. What is the expected real return for your portfolio?

   		A rate equal to or greater than 8.74% but less than 9.94%
   		A rate equal to or greater than 7.37% but less than 8.74%
   		A rate equal to or greater than 9.94% but less than 13.57%
   		A rate equal to or greater than 13.57% but less than 19.41%
   		A rate less than 7.37% or a rate greater than 19.41%