Question
1. Company X owns $55,000 of Alpha, Inc. stock that has a beta of 4.8. Company X also owns $20,000 of Deltas Company (beta =
1. Company X owns $55,000 of Alpha, Inc. stock that has a beta of 4.8. Company X also owns $20,000 of Deltas Company (beta = 2.6) and $25,000 of Sigma (beta = 0.6). Assume that the market return will be 9 percent and the risk-free rate is 3 percent. What is the market risk premium? (If the answer is 1.234%, please enter 1.234)
2. Company X owns $55,000 of Alpha, Inc. stock that has a beta of 4.8. Company X also owns $20,000 of Deltas Company (beta = 2.6) and $25,000 of Sigma (beta = 0.6). Assume that the market return will be 9 percent and the risk-free rate is 3 percent. What is the risk premium of Alpha, Inc? (If the answer is 1.234%, please enter 1.234)
3. Company X owns $55,000 of Alpha, Inc. stock that has a beta of 4.8. Company X also owns $20,000 of Deltas Company (beta = 2.6) and $25,000 of Sigma (beta = 0.6). Assume that the market return will be 9 percent and the risk-free rate is 3 percent. What is the risk premium of Delta's Company? (If the answer is 1.234%, please enter 1.234)
4. Company X owns $55,000 of Alpha, Inc. stock that has a beta of 4.8. Company X also owns $20,000 of Deltas Company (beta = 2.6) and $25,000 of Sigma (beta = 0.6). Assume that the market return will be 9 percent and the risk-free rate is 3 percent. What is the risk premium of Sigma? (If the answer is 1.234%, please enter 1.234)
5. Company X owns $55,000 of Alpha, Inc. stock that has a beta of 4.8. Company X also owns $20,000 of Deltas Company (beta = 2.6) and $25,000 of Sigma (beta = 0.6). Assume that the market return will be 9 percent and the risk-free rate is 3 percent. What is the portfolio's risk premium? (If the answer is 1.234%, please enter 1.234)
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