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Your client would like to allocate 3 0 % to the optimal risky portfolio, and 7 0 % to the risk - free asset. The

Your client would like to allocate 30% to the optimal risky portfolio, and 70% to the risk-free asset. The risk-free rate of return is 0.04(i.e.,4%). The optimal risky portfolio includes two assets, A and B, with weights 62% and 38%. The expected return on A is 0.08(8%) and B is 0.14(14%).
What is the expected return on the client's complete portfolio?
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The expected return on the complete portfolio is 14.50%.
The expected return on the complete portfolio is 10.28%.
The expected return on the complete portfolio is 8.67%.
The expected return on the complete portfolio is 4.50%.
The expected return on the complete portfolio is 5.88%.
The expected return on the complete portfolio is 7.14%.

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