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John owns $15,000 of ABC. stock that has a beta of 3.8. He also own $10,000 of PAR (beta=1.6) and $10,000 of DEF (beta=0.8).

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John owns $15,000 of ABC. stock that has a beta of 3.8. He also own $10,000 of PAR (beta=1.6) and $10,000 of DEF (beta=0.8). Giv a market return of 12% and a risk-free rate is 6%. What is the risk premium of the portfolio? Select one: O a. 13.5% O b. 13.7% O c. 13.9% O d. 13.3% O e. 13.1%

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