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You own $15,300 of Denny's Corp stock that has a beta of 3.19. You also own $17,850 of Qwest Communications (beta = 1.54) and $9,350
You own $15,300 of Denny's Corp stock that has a beta of 3.19. You also own $17,850 of Qwest Communications (beta = 1.54) and $9,350 of Southwest Airlines (beta = 1.27). Assume that the market return will be 12.0 percent and the risk-free rate is 5.0 percent. What is the market risk premium? 41 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
You own $15,300 of Denny's Corp stock that has a beta of 3.19. You also own $17.850 of Qwest Communications (beta = 1.54) and $9,350 of Southwest Airlines (beta = 1.27). Assume that the market return will be 12.0 percent and the risk-free rate is 5.0 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 Owest'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 Step by Step Solution
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