Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 7 xyz owns a portfolio that has 8,000 sha

QUESTION 7 XYZ owns a portfolio that has 8,000 shares of stock A, which is...

70.2K

Verified Solution

Question

Finance

image
QUESTION 7 XYZ owns a portfolio that has 8,000 shares of stock A, which is priced at $11.75 per share and has an expected return of 12.76%, and 6,000 shares of stock B, which is priced at $7.50 per share and has an expected return of 7.03%. The risk-free return is 3.52% and inflation is expected to be 1.81% What is the risk premium for XYZ's portfolio? a. 9.09% (plus or minus 0.05 percentage points) b.7.38% (plus or minus 0.05 percentage points) O c. 8.93% (plus or minus 0.05 percentage points) Od. 6.78% (plus or minus 0.05 percentage points) e. None of the above is within 0.05 percentage points of the correct answer Save All Answers Close Click Save and Submit to save and submit. Click Save All Answers to save all answers MacBook Pro 888 UT

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Basic Math
1.2K views

Exit pre test 14 The power factor in a resistive circuit is expressed mathematically as...

Accounting
1.2K views

On April 15, 2021, fire damaged the office and warehouse ofSunland Corporation. The only...

Biology
1.2K views

Your colleague in the lab next door is studying the disease cerebral cavernous malformations (CCM) and...

Statistics
1.2K views

With simple regression if we want to know the size of the effect i e...

Calculus
1.2K views

The rth term of a progression is R, the sth term is S, and the...

Accounting
1.2K views

August 1 Beginning inventory 80 units of Product A @ $1,800 total cost 5 Purchased...

Accounting
1.2K views

Prepare a shatement of cash flows for January Note: Amounts to be deducted should be...

Accounting
1.2K views

Your business purchased office supplies of S2, 500 on account. The journal entry to record...

Accounting
1.2K views

Please assist with the last step in Part C. Thank you Toying With...

Accounting
1.2K views

Superior Company provided the following account balances for the year ended December 31 (all raw...

Accounting
1.2K views

Imperial Jewelers manufactures and sells a gold bracelet for $406.00. The company's accounting system says...

Accounting
1.2K views

Un examen de las cuentas de inventario de Shorter Corporation revel la siguiente informacin: Materias...