A stock has an expected return of 10.3 percent. The beta of the stock is 2.76 and the risk-free rate is 1.4 percent. What is the market risk premium? 3.12% 3.42% 3.32% 3.02% 3.22% Question 18 1 pts Suppose you hold a diversified portfolio consisting of a $11,694 invested equally in each of 20 different common stocks. The portfolio's beta is 1.15. Now suppose you decided to sell one of your stocks that has a beta of 0.7 and to use the proceeds to buy a replacement stock with a beta of 0.9. What would the portfolio's new beta be? 0.96 1.26