Assume you stock portfolio is comprised of: 60% of your total is in a computer company stock (that has a beta of 1.3, the risk-free rate is 5%, and the expected return on the market as a whole is 11%); and 40% of your total is in the petroleum company stock (that has a beta of 1.3, the risk free rate is 5%, and the market risk premium is 11%). Calculate:
a. The expected return for you computer company stock.
b. The expected return for you petroleum company stock.
c. The expected weighted return for you portfolio.