Risk Premiums You Own $5,000 of Software Corp's Stock That

question 9

Multiple Choice

Risk Premiums You own $5,000 of Software Corp's stock that has a beta of 3.75. You also own $10,000 of Home Improvement Corp (beta = 1.5) and $15,000 of Publishing Corp (beta = 0.35) . Assume that the market return will be 13 percent and the risk-free rate is 4.5 percent. What is the risk premium of the portfolio?

• A) 11.05%
• B) 16.50%
• C) 17.00%
• D) 24.70%

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Definitions:

Competitive Intelligence

The act of gathering and analyzing information about competitors' activities and strategies to inform a company's decisions.

Marketing Program

A comprehensive plan that integrates various promotional tools and strategies to communicate with a target audience and achieve specific marketing objectives.

Marketing Mix

The combination of factors that can be controlled by a company to influence consumers to purchase its products. These often include product, price, place, and promotion.

Competitive Advantages

The conditions or factors that put a company or product at a favourable or superior position compared to its competitors.