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10-25 Risk Premiums (LG10-3) You own $23,868 of Denny's Corp stock that has a beta of 3.05. You also own $35,100 of Qwest Communications (beta
10-25 Risk Premiums (LG10-3) You own $23,868 of Denny's Corp stock that has a beta of 3.05. You also own $35,100 of Qwest Communications (beta = 1.64) and $11,232 of Southwest Airlines (beta = 1.08). Assume that the market return will be 15.0 percent and the risk-free rate is 7.0 percent. What is the market risk premium? Market risk premium What is the risk premium of each stock? (Round your answers to 2 decimal places.) Denny's risk premium Qwest's risk premium % % Southwest Airline's risk premium What is the risk premium of the portfolio? (Do not round intermediate calculations and round your final answer to 2 decimal places.) Portfolio risk premium
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