Consider the following information on three stocks:

A portfolio is invested $40$ percent each in Stock A and Stock B$,$ and $20$ percent in Stock

C$.$ The expected T$-$bill rate is $3\mathrm{.}2$ percent. What is the expected risk premium on the

portfolio? $(10\%)$

A$.3\mathrm{.}29\%$

B$.5\mathrm{.}55\%$

C$.7\mathrm{.}00\%$

D$.10\mathrm{.}25\%$

E$.12\mathrm{.}75\%$Consider the following information on three stocks:

A portfolio is invested $40$ percent each in Stock A and Stock B$,$ and $20$ percent in Stock

C$.$ The expected T$-$bill rate is $3\mathrm{.}2$ percent. What is the expected risk premium on the

portfolio? $(10\%)$

A$.3\mathrm{.}29\%$

B$.5\mathrm{.}55\%$

C$.7\mathrm{.}00\%$

D$.10\mathrm{.}25\%$

E$.12\mathrm{.}75\%$