Angelo Has Decided to Invest $24,500 in a Portfolio with an Expected

Multiple Choice

Angelo has decided to invest $24,500 in a portfolio with an expected return of 9.8 percent and invest $10,000 in a risk-free asset that he expects to return 3.6 percent.What rate of return is he expecting on this portfolio?

A) 6.92 percent
B) 8.00 percent
C) 7.84 percent
D) 8.59 percent
E) 9.01 percent