You own a portfolio that has 1000 shares of stock A, which is priced at $13.87 per share and has an expected return of 16.52%, and 2000

shares of stock B, which is priced at $9.10 per share and has an expected return of 8.00%. The risk-free return is 4.27% and inflation is

expected to be 3.27%. What is the risk premium for your portfolio?

O 5.93% (plus or minus 0.02 percentage points)

O 6.67% (plus or minus 0.02 percentage points)

O 4.45% (plus or minus 0.02 percentage points)

O 7.41% (plus or minus 0.02 percentage points)

O None of the above is within 0.02 percentage points of the answer