You Have a Portfolio Consisting of Equal Amounts of Royal

Multiple Choice

You have a portfolio consisting of equal amounts of Royal Bank stock and Treasury bills. If you replace half of the Treasury bills with more Royal Bank stock, the portfolio expected return will likely ___________, all else the same.

A) Increase.
B) Decrease.
C) Remain unchanged.
D) Either increase or decrease.
E) Decrease if IBM is considered a small-cap stock.