You analyze the prospects of several companies and come to the following conclusions about the expected return on each:
|
Stock
|
Expected Return
|
|
Starbucks
|
18%
|
|
Sears
|
8%
|
|
Microsoft
|
16%
|
|
Limited Brands
|
12%
|
You decide to invest $4,000 in Starbucks, $6,000 in Sears, $12,000 in Microsoft, and $3,000 in Limited Brands. What is the expected return on your portfolio?