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You own $10,000 of Denny's Corp stock that has a beta of 2.9. You also own $15,000 of Qwest Communications (beta = 1.5) and $5,000
You own $10,000 of Denny's Corp stock that has a beta of 2.9. You also own $15,000 of Qwest Communications (beta = 1.5) and $5,000 of Southwest Airlines (beta = 0.7). Assume that the market return will be 11.5 percent and the risk-free rate is 4.5 percent. What is the market risk premium? 3:26 % * What is the risk premium of each stock? (Round your answers to 2 decimal places.) ices % 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 % D Nort
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