You Own $14,000 of Diner's Corp

question 53

Multiple Choice

You own $14,000 of Diner's Corp. stock that has a beta of 2.1. You also own $14,000 of Comm Corp. (beta = 1.3) and $12,000 of Airlines Corp. (beta = 0.6) . Assume that the market return will be 15 percent and the risk-free rate is 6.5 percent. What is the total risk premium of the portfolio?

• A) 11.645 percent
• B) 20.55 percent
• C) 23.905 percent
• D) 38.00 percent

Learn to calculate F-statistics and identify rejection regions in hypothesis testing.

Understand the role of blocking in experimental designs to improve accuracy.

Interpret the results of ANOVA in practical scenarios and make informed decisions.

Identify the assumptions underlying ANOVA and the importance of their validation.

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