Answer:
11.82%
Step-by-step explanation:
Given that,
Value in stock M = $16,600
Value in stock N = $26,900
Expected return on Stock M = 9.60%
Expected return on Stock N = 13.20%
Total value :
= Value in stock M + Value in stock N
= $16,600 + $26,900
= $43,500
Expected Portfolio return on stock M:
= Return × Investment weight


= 3.66%
Expected Portfolio return on stock N:
= Return × Investment weight


= 8.16%
Expected return on the portfolio:
= Expected Portfolio return on stock M + Expected Portfolio return on stock N
= 3.66% + 8.16%
= 11.82%