You own 14820 of opsware inc stock that has an assumed beta


Risk Premiums

You own $14,820 of Opsware, Inc., stock that has an assumed beta of 4.04. You also own $19,760 of Lowe’s Companies (assumed beta = 1.50) and $3,420 of New York Times (assumed beta = 0.81). Assume that the market return will be 14 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 Times 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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Financial Management: You own 14820 of opsware inc stock that has an assumed beta
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