Question

- Question 16 1 point Number Help You own a portfolio that has 4,800 shares of stock A, which is priced at 19.2 dollars per share and has an expected return of 16.69 percent, and 2,900 shares of stock B, which is priced at 28.3 dollars per share and has an expected return of 7.45 percent. The risk- free return is 2.86 percent and inflation is expected to be 2.38 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. Number

Answer 1

fix X =D3* B3 ЕЗ A В C D Return (r 16.69% $ 7.45% $ 1 Weights Weighted return Investment Stock 1 2 92,160 0.5290 0.0883 0.4710 Stock 2 3 82,070 0.0351 4 Market value $ 174,230 1.0000 6 Expected return of portfolio Less: Risk free rate 7 0.1234 8 0.0286 0.0948 Risk premium of portfolio 10 LO LO

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