Consider the following information on a portfolio of three stocks State of Economy Boom Normal Bust Probability of State of Economy .15 .80 ,05 Stock A Rate of Return 05 08 .12 Stock B Rate of Return .21 15 - 22 Stock C Rate of Return .18 .07 -,02 The portfolio is invested 35 percent in each Stock A and Stock B and 30 percent in Stock C. If the expected T-bill rate is 3.90 percent, what is the expected risk premium on the portfolio? 6.19 percent 6.90 percent 7.38 percent 0 7.72 percent 8.68 percent O