What is the risk premium of each stock

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Reference no: EM131182496

You own $10,000 of Denny’s Corp stock that has a beta of 2.9. You also own $15,000 of Qwest Communications (beta = 1.5) and $5,000 of Southwest Airlines (beta = 0.7). Assume that the market return will be 11.5 percent and the risk-free rate is 4.5 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 Airlines risk premium % What is the risk premium of the portfolio?

Reference no: EM131182496

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