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You own $21, 600 of Denny's Corp stock that has an assumed beta of 3.32. You also own $28, 620 of Qwest Communications (assumed beta
You own $21, 600 of Denny's Corp stock that has an assumed beta of 3.32. You also own $28, 620 of Qwest Communications (assumed beta 1.84) and $3, 780 of Southwest Airlines (assumed beta 1.11). Assume that the market return will be 11.0 percent and the risk-free rate is 2.0 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 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
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