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4. Portfolio risk and return Cheyenne holds a $10,000 portfolio that consists of four stocks. Her investment in each stock, as well as each stock's
4. Portfolio risk and return Cheyenne 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 Omni Consumer Products Co. (OCP) $3,500 1.00 9.00% Kulatsu Motors Co. (KMC) $2,000 1.90 11.50% Three Waters Co. (TWC) $1,500 1.15 20.00% Flitcom Corp. (FC) $3,000 0.30 28.50% Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Kulatsu Motors Co. O Three Waters Co. Suppose all stocks in Cheyenne's portfolio were equally weighted. Which of these stocks would contribute the least market risk to the portfolio? O Kulatsu Motors Co. O Three Waters Co. O Omni Consumer Products Co. O Flitcom Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Omni Consumer Products Co. O Kulatsu Motors Co. O Three Waters Co. O Flitcom Corp. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Beta Required Return O Omni Consumer Products Co. O Flitcom Corp. Suppose all stocks in the portfolio were equally weighted. Which of these stocks would have the least amount of stand-alone risk? O Omni Consumer Products Co. O Kulatsu Motors Co. O Three Waters Co. O Flitcom Corp. If the risk-free rate is 4% and the market risk premium is 5.5%, what is Cheyenne's portfolio's beta and required return? Fill in the following table: Beta Required Return Cheyenne's portfolio
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