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

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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. 9.0996 (plus or minus 0.05 percentage points) b. 7.389 (plus or minus 0.05 percentage points) C. 8.9396 (plus or minus 0.05 percentage points) d. 6.78% (plus or minus 0.05 percentage points) e. None of the above is within 0.05 percentage points of the correct

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