Consider the following information on a portfolio of three stocks: The portfolio is invested 35 percent in each A and B and 30 percent in C. If the expected T-bill rate is 3.90 percent, what is the expected risk premium on the portfolio?
A) 6.19 percent
B) 6.90 percent
C) 7.38 percent
D) 7.72 percent
E) 8.68 percent

Question

Consider the following information on a portfolio of three stocks:  The portfolio is invested 35 percent in each A and B and 30 percent in C. If the expected T-bill rate is 3.90 percent, what is the expected risk premium on the portfolio?
A) 6.19 percent 
B) 6.90 percent 
C) 7.38 percent 
D) 7.72 percent 
E) 8.68 percent

Quizplus · Accepted Answer

The Answer of Consider the following information on a portfolio of three stocks:  The portfolio is invested 35 percent in each A and B and 30 percent in C. If the expected T-bill rate is 3.90 percent, what is the expected risk premium on the portfolio?
A) 6.19 percent 
B) 6.90 percent 
C) 7.38 percent 
D) 7.72 percent 
E) 8.68 percent

Consider the Following Information on a Portfolio of Three Stocks