Question
You own $17,390 of Opsware, Inc. stock that has a beta of 3.88. You also own $26,790 of Lowe's companies (beta = 1.72) and $2,820
You own $17,390 of Opsware, Inc. stock that has a beta of 3.88. You also own $26,790 of Lowe's companies (beta = 1.72) and $2,820 of New York Times (beta = 0.70). Assume that the market return will be 9 percent and the risk-free rate is 3 percent.
What is the market risk premium?
What is the risk premium of each stock? (3 answers)
What is the risk premium of the portfolio?
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
