You own a $3,500 portfolio consisting of two stocks, A and B. Stock A is valued at $1,680 and has an expected return of 12%. Stock B has an expected return of 7%. What are the weights of stock A and B in the portfolio?
35%, 65%
48%, 52%
52%, 48%
65%, 35%
Based on the information from question above, what is the expected return on the portfolio?
9.40%
10.50%
11.95%