Consider the Following Information on Three Stocks: a Portfolio

question 52

Multiple Choice

Consider the following information on three stocks: A portfolio is invested 35 percent each in Stock A and Stock B and 30 percent in Stock C. What is the expected risk premium on the portfolio if the expected T-bill rate is 3.8 percent?

• A) 11.47 percent
• B) 12.38 percent
• C) 16.67 percent
• D) 24.29 percent
• E) 29.99 percent

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