Answer:expected return on the portfolio=11.79%
Explanation:
Calculation of the expected return on the portfolio:
total weight = $2,800 +$3,250 =$6,050
Portfolio expected return = weight of stock A*expected return on stock A + weight of stock B*expected return on stock B
= 2800/ 6,050 x 14.7% + 3250 /6050 x 9.3%
0.4628 x 0.147 + 0.5372 x 0.093=
0.06803 + 0.04996
=0.1179 x 100
Portfolio expected return= 11.79% 0r rounded to 11.80%
