You own a portfolio that has 1000 shares of stock

A, which is priced at $13.64 per share and has an expected return of 16.65%, and 2000 shares of stock B, which is priced at $9.21

per share and has an expected

return of 7.87%. The risk-free return is 3.95% and inflation is

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

4.60% (plus or minus 0.02 percentage points)

6.13% (plus or minus 0.02 percentage points.

6.89% (plus or minus 0.02 percentage points)

766% (plus or minus 0.02 percentage points)

None of the above is within 0.02 percentage points of the answe