Solved

Risk Premiums You Own $14,000 of Diner's Corp Stock That

Question 41

Multiple Choice

Risk Premiums You own $14,000 of Diner's Corp stock that has a beta of 2.1. You also own $14,000 of Comm Corp (beta = 1.3) and $12,000 of Airlines Corp (beta = 0.6) . Assume that the market return will be 15 percent and the risk-free rate is 6.5 percent. What is the total risk premium of the portfolio?


A) 11.645%
B) 20.55%
C) 23.905%
D) 38.00%

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q6: Which of the following statements is incorrect?<br>A)The

Q19: Which of the following is most correct?<br>A)In

Q36: A measure of the sensitivity of a

Q39: Risk Premium The annual return on the

Q40: Expected Return Compute the expected return given

Q42: Stock Market Bubble If the NASDAQ stock

Q43: Required Return Using the information in the

Q44: You have a portfolio consisting of 20%

Q45: You hold the positions in the table

Q60: How might a large market risk premium