Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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You own $17,765 of Opsware, Inc. stock that has a beta of 3.73. You also own $24,310 of Lowe's Companies (beta = 1.97) and $4,675 of
New York Times (beta = 1.08). Assume that the market return will be 13 percent and the risk-free rate is 6 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.)
Opsware's risk premium
Lowe's risk premium
New York Time'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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Transcribed Image Text:You own $17,765 of Opsware, Inc. stock that has a beta of 3.73. You also own $24,310 of Lowe's Companies (beta = 1.97) and $4,675 of New York Times (beta = 1.08). Assume that the market return will be 13 percent and the risk-free rate is 6 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.) Opsware's risk premium Lowe's risk premium New York Time'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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