The market risk premium is 856 percent and the risk-free


The stock of Silvanus Wildlife, Inc., has a beta of 0.91. The market risk premium is 8.56 percent and the risk-free rate is 4.71 percent. What is the expected return (in percents) on Silvanus stock?

Part B: The stock of Dagda Lampoonery has a risk premium of 9.16 percent while the inflation rate is 2.73 percent and the risk-free rate is 3.87 percent. What is the expected return (in percents) on this stock?

Part C Eriu owns a portfolio that consists of $8,730 in stock A, $4,496 in stock B, $13,306 in stock C, and $5,909 in stock D. What is the portfolio weight (in percents) of stock D?

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Financial Management: The market risk premium is 856 percent and the risk-free
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