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You own a portfolio that has 3000 shares of stock A, which is priced at $13.16 per share and has an expected return of 16.81%,
You own a portfolio that has 3000 shares of stock A, which is priced at $13.16 per share and has an expected return of 16.81%, and 4000 shares of stock B, which is priced at $9.18 per share and has an expected return of 7.64%. The risk-free return is 4.33% and inflation is expected to be 3.27%. What is the risk premium for your portfolio? 7.25% (plus or minus 0.02 percentage points) 4.84% (plus or minus 0.02 percentage points) 8.06% (plus or minus 0.02 percentage points) 6.45% (plus or minus 0.02 percentage points) None of the above is within 0.02 percentage points of the answer A Moving to another question will save this response
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