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3. Portfolio risk and return Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's

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3. Portfolio risk and return Elle holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Stock Investment Beta Standard Deviation Andalusian Limited (AL) $3,500 0.90 9.00% Zaxatti Enterprises (ZE) $2,000 1.30 11.50% Three Waters Co. (TWC) $1,500 1.15 18.00% Mainway Toys Co. (MTC) $3,000 0.30 19.50% Suppose all stocks in Elle's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Zaxatti Enterprises O Mainway Toys Co. O Andalusian Limited O Three Waters Co. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Andalusian Limited O Three Waters Co. O Mainway Toys Co. O Zaxatti Enterprises If the risk-free rate is 7% and the market risk premium is 8.5%, what is Elle's portfolio's beta and required return? Fill in the following table: Beta Required Return Elle's portfolio Zaxatti Er 0.8375 0.7119 If the risk-free rate the market risk premium is 8.5%, what is Elle's portfolio's beta and required return? Fill in the following table: 0.5611 1.2563 Required Return Elle's portfolio Zaxatti Enterprises 14.12% If the risk-free rate is 7% and the ma 1,623.80% hium is 8.5%, what is Elle's portfolio's beta and required return? Fill in the following table: 1,750.88% 1,101.36% Beta urn Elle's portfolio

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