You own $13,020 of Denny's Corporation stock that has a beta of 3.06. You also own...
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You own $13,020 of Denny's Corporation stock that has a beta of 3.06. You also own $27,125 of Qwest Communications (beta = 1.78) and $14,105 of Southwest Airlines (beta = 0.72). Assume that the market return will be 10.0 percent and the risk- free rate is 6.0 percent. What is the market risk premium? Market risk premium % What is the risk premium of each stock? Note: 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? Note: Do not round intermediate calculations and round your final answer to 2 decimal places. You own $13,020 of Denny's Corporation stock that has a beta of 3.06. You also own $27,125 of Qwest Communications (beta = 1.78) and $14,105 of Southwest Airlines (beta = 0.72). Assume that the market return will be 10.0 percent and the risk- free rate is 6.0 percent. What is the market risk premium? Market risk premium % What is the risk premium of each stock? Note: 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? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.
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