Question
You own $14,504 of Opsware, Inc., stock that has an assumed beta of 3.85. You also own $20,384 of Lowes Companies (assumed beta = 1.89)
| You own $14,504 of Opsware, Inc., stock that has an assumed beta of 3.85. You also own $20,384 of Lowes Companies (assumed beta = 1.89) and $4,312 of New York Times (assumed beta = 1.17). Assume that the market return will be 16 percent and the risk-free rate is 7 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.) |
| Opswares risk premium | % |
| Lowes risk premium | % |
| New York Times risk premium | % |
| What is the risk premium of the portfolio? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) |
| Portfolio risk premium | % |
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The Essential Credit Repair Handbook
Authors: Deborah McNaughton
1st Edition
160163160X, 978-1601631602
