$($Related to Checkpoint $8\mathrm{.}1)($Computing the portfolio expected rate

of return$)$ Penny Francis inherited a $$200,000$ portfolio of investments

from her grandparents when she turned $21$ years of age. The portfolio is

comprised of Treasury bills and stock in Ford $($F$)$ and Harley

Davidson $($HOG$)$:

a$.$ Based on the current portfolio composition and the expected rates

of return, what is the expected rate of return for Penny's portfolio?

b$.$ If Penny wants to increase her expected portfolio rate of return, she

can increase the allocated weight of the portfolio she has invested in

stock $($Ford and Harley Davidson$)$ and decrease her holdings of

Treasury bills. If Penny moves all her money out of Treasury bills and

splits it evenly between the two stocks, what will be her expected rate

af unt...ms

a$.$ Based on the current portfolio composition and the given expected

rates of return, the expected rate of return for Penny's portfolio is $\%.$

$($Round to two decimal places.$)$

Data table

$($Click on the icon in order to copy its contents into a spreadsheet.$)$