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You own a portfolio that has a total value of 107,000 dollars. The portfolio has 5,000 shares of stock A, which is priced at 7.3
You own a portfolio that has a total value of 107,000 dollars. The portfolio has 5,000 shares of stock A, which is priced at 7.3 dollars per share and has an expected return of 10.11 percent. The portfolio also has 10,000 shares of stock B, which has an expected return of 14.7 percent. The risk-free return is 2.48 percent and inflation is expected to be 1.46 percent. What is the risk premium for your portfolio? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
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