Problem:
You own a portfolio that has $2,500 invested in Stock A and $3,050 invested in Stock B.
Task:
Question: If the expected returns on these stocks are 8 percent and 18 percent, respectively, what is the expected return on the portfolio?
A. 12.50%
B. 13.00%
C. 13.77%
D. 13.50%
E. 14.17%
Note: Please show guided help with steps and answer.