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You own a portfolio that has 2 0 0 0 shares of stock A , which is priced at $ 1 3 . 7 5

You own a portfolio that has 2000 shares of stock A, which is priced at $13.75 per share and has an expected return of 16.86%, and 4000 shares of stock B, which is priced at $9.17 per share and has an expected return of 7.79%. The risk-free return is 4.21% and inflation is expected to be 3.27%. What is the risk premium for your portfolio?
6.72%(plus or minus 0.02 percentage points)
5.98%(plus or minus 0.02 percentage points)
7.47%(plus or minus 0.02 percentage points)
4.48%(plus or minus 0.02 percentage points)
None of the above is within 0.02 percentage points of the answer

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