Sally's Broker Told Her That the Expected Return from Her

Multiple Choice

Sally's broker told her that the expected return from her portfolio was 14.2%. If 40% of her securities have an expected return of 10.3 percent and 20% have an expected return of 12.8 percent, what is the expected return of the remaining portion of her portfolio?

A) 20.9%
B) 18.8%
C) 12.5%
D) Cannot be determined