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3. Portfolio risk and return Emma holds a $7,500 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 Emma holds a $7,500 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's beta, is listed in the following table: Investment Beta Standard Deviation 15.00% Stock Omni Consumer Products Co. (OCP) Zaxatti Enterprises (ZE) Western Gas & Electric Co. (WGC) Makissi Corp. (MC) $2,625 $1,500 0.90 1.90 11.50% 18.00% $1,125 1.15 $2,250 0.50 28.50% Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. Makissi Corp. Western Gas & Electric Co. Zaxatti Enterprises Suppose all stocks in Emma's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? Omni Consumer Products Co. O Makissi Corp. Western Gas & Electric Co. Zaxatti Enterprises Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? Omni Consumer Products Co. Makiss Corp. Zaxatti Enterprises Western Gas & Electric Co. If the risk-free rate is 7% and the market rak premium is 8.5%, what is Emma's portfolio's bets and required return? Fill in the following table: Beta Required Return Emma's portfolio

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