4. You own a portfolio that has 1000 shares of stock A, which is priced at $13.64 per share and has an expected return of 16.14%, and 3000 shares of stock B, which is priced at $9.28 per share and has an expected return of

8.07%. The risk-free return is 4.00% and inflation is expected to be 3.27%. What is the risk premium for your portfolio?

O 4.03% (plus or minus 0.02 percentage points)

O 6.05% (plus or minus 0 02 percentage points)

O 5.38% (plus or minus 0.02 percentage points)

O 6.72% (plus or minus 0.02 percentage points)

O None of the above is within 0.02 percentage points of the answer