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QUESTION 1 XYZ owns a portfolio that has 8,000 shares of stock A, which is priced at $11.75 per share and has an expected return

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QUESTION 1 XYZ owns a portfolio that has 8,000 shares of stock A, which is priced at $11.75 per share and has an expected return of 12.76%, and 6,000 shares of stock B, which is priced at $7.50 per share and has an expected return of 7.03%. The risk-free return is 3.52% and inflation is expected to be 1.81% What is the risk premium for XYZ's portfolio? a. 9.09% (plus or minus 0.05 percentage points) Ob.7.38% (plus or minus 0.05 percentage points) c. 8.93% (plus or minus 0.05 percentage points) Od. 6.78% (plus or minus 0.05 percentage points) e. None of the above is within 0.05 percentage points of the correct

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