A Portfolio Is Entirely Invested into Buzz's Bauxite Boring Equity

Multiple Choice

A portfolio is entirely invested into Buzz's Bauxite Boring Equity, which is expected to return 16%, and Zum's Inc. bonds, which are expected to return 8%. Sixty percent of the funds are invested in Buzz's and the rest in Zum's. What is the expected return on the portfolio?

A) 9.6%.
B) 12.8%.
C) 24.1%.
D) 6.4%.