You own $17,765 of Opsware, Inc. stock that has a beta of 3.73. You also own $24,310 of Lowe's Companies (beta = 1.97) and $4,675 of New York Times (beta = 1.08). Assume that the market return will be 13 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 Time's 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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A: Price after 1 year = P 110 Dividend after 1 year = P 2 Required return = 12%

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A: The formula used is shown:

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