Stock a Has an Expected Return of 10 Percent Per

Multiple Choice

Stock A has an expected return of 10 percent per year and stock B has an expected return of 20 percent. If 40 percent of a portfolio's funds are invested in stock A and the rest in stock B, what is the expected return on the portfolio of stock A and stock B?

A) 10 percent
B) 20 percent
C) 16 percent
D) 14 percent