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Related to Checkpoint 8.1) (Computing the portfolio expected rate of return) Penny Francis inherited a...

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Related to Checkpoint 8.1) (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 portolio composition and the expected rates of return, what is the expected rate of return for Penny's portfolio? b. Penny wants 0 increase her pected portfolio ate ofre um she can ncrease he allocated weight o the portfol o she has i vested stock ord and Harley a son and decrease her holdings o Treasury bils and splits it evenly between the two stocks, what will be her expected rate of return? c. If Penmy does move money out of Treasury bills and into the two stocks, she will reap a higher expected portfolio return, so why would anyone want to hold Treasury bils in their portfolio? Penny moves all her money out Treasury bills 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 Expected Return 4.6% 86% 12.8% $ Value 78,000 57,000 65,000 Treasury bills Ford (F) Harley Davidson (HOG) Print Done

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