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You own $14,065 of Denny's Corporation stock that has a beta of 2.95. You also own $22,795 of Qwest Communications (beta =1.87 ) and $11,640
You own $14,065 of Denny's Corporation stock that has a beta of 2.95. You also own $22,795 of Qwest Communications (beta =1.87 ) and $11,640 of Southwest Airlines (beta =1.01 ). Assume that the market return will be 10.0 percent and the risk-free rate is 5.0 percent. What is the market risk premium? What is the risk premium of each stock? Note: Round your answers to 2 decimal places. What is the risk premium of the portfolio? Note: Do not round intermediate calculations and round your final answer to 2 decimal places
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