What Is the Expected Return of the Three-Stock Portfolio Described

Multiple Choice

What is the expected return of the three-stock portfolio described below? $\begin{array}{lcc}\text { Common Stock } & \text { Market Value } & \text { Expected Return } \\\hline \text { Alko Inc. } & 25,000 & 38 \% \\\text { Belmont Co. } & 100,000 & 10 \% \\\text { Cardo Inc. } & 75,000 & 16 \%\end{array}$

A) 21.33%
B) 12.50%
C) 32.00%
D) 15.75%
E) 16.80%