Use the following data:
Market risk premium = 8.5%
Risk-free rate = 3%
Beta of XYZ stock = 1.4
Beta of PDQ stock = 2.0
Investment in XYZ stock = $70,000
Investment in PDQ stock = $130,000
You have no assets other than your investments in XYZ and PDQ stock.
What is the expected return of your portfolio? Show all work.