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You own $14,504 of Opsware, Inc., stock that has an assumed beta of 3.85. You also own $20,384 of Lowe’s Companies (assumed beta = 1.89) and $4,312 of New York Times (assumed beta = 1.17). Assume that the market return will be 16 percent and the risk-free rate is 7 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. Round your final answer to 2 decimal places.)

Portfolio risk premium %

Financial Management, Finance

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