John owns $15,000 of ABC. stock that has a beta of 3.8. He also own $10,000 of PAR (beta-1.6) and $10,000 of DEF (beta=0.8). Given a market return of 12% and a risk-free rate is 6%. What is the risk premium of the portfolio? Select one:
a. 13.3%
b. 13.1%
c. 13.9%
d. 13.5%
e. 13.7%
