The expected return on MSFT next year is 12% with a standard deviation of 20%. The expected return on AAPL next year is 24% with a standard deviation of 30%. If James makes equal investments in MSFT and AAPL(which means the weights are 0.5 for both) what is the expected return on his portfolio.
a.20%
b.16%
c.18.5%
d.25%