What is the risk premium of the portfolio

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Reference no: EM131911029

You own $9,240 of Denny’s Corp stock that has an assumed beta of 3.39. You also own $17,820 of Qwest Communications (assumed beta = 1.72) and $5,940 of Southwest Airlines (assumed beta = 1.12). Assume that the market return will be 10.0 percent and the risk-free rate is 2.0 percent. What is the market risk premium? What is the risk premium of each stock? What is the risk premium of the portfolio?

Reference no: EM131911029

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