Final answer:
To calculate the expected return on the portfolio, you need to calculate the weighted average of the expected returns of each stock.
Step-by-step explanation:
To calculate the expected return on the portfolio, we need to calculate the weighted average of the expected returns of each stock.
For ABC: Expected return = 0.0494 * (0.058 + 0.088) = 0.0073136
For DEF: Expected return = 0.0627 * (0.058 + 0.088) = 0.0093981
For GHI: Expected return = 0.0494 * (0.058 + 0.088) = 0.0073136
For JKL: Expected return = 0.0285 * (0.058 + 0.088) = 0.0048885
Expected return on the portfolio = 0.0073136 + 0.0093981 + 0.0073136 + 0.0048885 = 0.0289138