An Investment Advisor Has Recommended a $50,000 Portfolio Containing Assets

Multiple Choice

An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, with an expected annual return of 12 percent; $10,000 will be invested in asset J, with an expected annual return of 18 percent; and $15,000 will be invested in asset K, with an expected annual return of 8 percent. The expected annual return of this portfolio is ________.

A) 12.67%
B) 12.00%
C) 10.00%
D) 11.78%