1. Your client, John Smith, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.

   E(Rp)		14.0%
   Standard Deviation of P		6.20%
   T-Bill rate		3.00%
   Proportion of Complete Portfolio in P		80%
   Proportion of Complete Portfolio in T-Bills		20%
   Composition of P:
   Stock A	40.00%
   Stock B	25.00%
   Stock C	35.00%
   Total	100.00%

   What is the expected return on Smith's complete portfolio?

   		14.00%
   		12.60%
   		11.80%
   		9.00%
   		7.20%