Question: Expected return of asset 1 is 10%; the expected return of asset 2 is 15%; the expected standard deviation of asset 1s returns is 3%

Expected return of asset 1 is 10%; the expected return of asset 2 is 15%; the expected standard deviation of asset 1s returns is 3% and for asset 2 it is 5%. If the portfolio is comprised of 30% of asset 1 and 70% of asset 2, what is the expected return of this two stock portfolio in decimal form that is, 10% = 0.10)?

A. 0.105
B. 0.115
C. 0.125
D. 0.135
E. None of the above

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