You Own $7,000 of Diner's Corp

question 7

Multiple Choice

You own $7,000 of Diner's Corp. stock that has a beta of 1.75. You also own $13,000 of Comm Corp. (beta = 1.15) and $20,000 of Airlines Corp. (beta = 0.7) . Assume that the market return will be 12 percent and the risk-free rate is 3.5 percent. What is the total risk premium of the portfolio?

• A) 8.76 percent
• B) 8.86 percent
• C) 10.20 percent
• D) 12.36 percent

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Definitions:

Real Time Analytics

The process of analyzing data as soon as it becomes available to make decisions without delay.

Data Mining

The process of analyzing large datasets to uncover patterns, correlations, and trends that can inform decision-making.

Behavioural Analytics

The study of consumers' actions and behaviors, primarily through data analysis, to improve marketing strategies and customer understanding.

Doppelganger Threats

Doppelganger threats involve the risk of a brand's identity being mimicked or undermined by similar or counterfeit representations that damage its image.