A portfolio is entirely invested into Buzz's Bauxite Boring Equity, which is expected to return 16%, and Zum's Inc. bonds, which are expected to return 8%. Sixty percent of the funds are invested in Buzz's and the rest in Zum's. What is the expected return on the portfolio?
A) 9.6%.
B) 12.8%.
C) 24.1%.
D) 6.4%.
Correct Answer:
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