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Problem 10-16 Risk Premiums (LG10-3) You own $23,290 of Denny's Corporation stock that has a...

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Problem 10-16 Risk Premiums (LG10-3) You own $23,290 of Denny's Corporation stock that has a beta of 3.06. You also own $28,770 of Qwest Communications (beta = 1.64) and $16,440 of Southwest Airlines (beta = 1.01). Assume that the market return will be 11.0 percent and the risk-free rate is 5.0 percent. What is the market risk premium? What is the risk premium of each stock? Note: Round your answers to 2 decimal places. What is the risk premium of the portfolio? Note: Do not round intermediate calculations and round your final answer to 2 decimal places.

image Problem 10-16 Risk Premiums (LG10-3) You own $23,290 of Denny's Corporation stock that has a beta of 3.06. You also own $28,770 of Qwest Communications (beta =1.64 ) and $16,440 of Southwest Airlines (beta =1.01 ). Assume that the market return will be 11.0 percent and the risk-free rate is 5.0 percent. What is the market risk premium? What is the risk premium of each stock? Note: Round your answers to 2 decimal places. 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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