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Jessica inherited a $1000 portfolio ofinvestments from her grandparents when sheturned 21 years of age. The portfoliois comprised of the following three investments: expectedreturn dollar valueTreasurybills 4.5% $40,000Ford(F) 8.0% $30,000Harley-Davidson(HOG) 12% $30,000a. Based on the current portfoliocomposition and the expected rates of return, what is the expectedrate of return for Jessicas portfolio?b. If Jessica wants to increase herexpected portfolio rate of return, she could increase the allocatedweight of the portfolio she has invested in stock (Ford andHarley-Davidson) and decrease our holdings of treasury bills. IfJessica moves all of her money out of treasury bills and splits itevenly between the two stocks, what will be her expected rate ofreturn?c. If Jessica does move money out ofthe treasury bills and into the two stocks she will reap a higherexpected portfolio return, so why would anyone want to holdtreasury bills and their portfolio?