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You own a portfolio that has 2000 shares of stock A, which is priced at $13.59 per share and has an expected return of 16.15%
You own a portfolio that has 2000 shares of stock A, which is priced at $13.59 per share and has an expected return of 16.15% and 4000 shares of stock B, which is priced at $9.33 per share and has expected return of 7.70%. The risk-free return is 3.82% and inflation is expected to be 3.27%. What is the risk premium for your perfidle?
6.70% (plus or minus 0.02 percentage points)
O 7.44% (plus or minus 0.02 percentage points)
4.46% (plus or minus 0.02 percentage points)
5.95% (plus or minus 0.02 percentage points)
None of the above is within 0.02 percentage points of the answer
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